СТА - ведущая юридическая компания в Дубае с офисами по всему мируhttps://www.stalawfirm.com/ru.htmlSTA Law Firm - Блоги - Bahrain LawruCopyright 2024 STA Law Firm All Rights Reserved<![CDATA[The Crypto-Asset Exchange System in Bahrain]]> The Crypto-Asset Exchange System in Bahrain

Bahrain's forward-thinking fintech regulations, coupled with a commitment to fostering young tech talent, have successfully lured some of the globe's most inventive financial entities to the region. Notably, cryptocurrency exchange Binance recently secured its inaugural license as a crypto-asset provider within the Gulf Cooperation Council (GCC).

To engage in cryptocurrency trading, such as buying or selling Bitcoin or Ethereum, individuals must first establish an account on a cryptocurrency exchange platform. These platforms, known as crypto-asset exchanges (CAX), including popular ones like Kraken, Coinegg, Gemini, and Binance, facilitate the exchange of traditional currencies like Bahraini Dinars or U.S. Dollars for digital assets.

A CAX allows users to trade one crypto-asset for another, such as converting Bitcoin to Litecoin or purchasing crypto using regular currency like Bahraini Dinar or U.S. Dollar. These exchanges display real-time market prices for the cryptocurrencies they offer, enabling users to monitor and make informed trading decisions. Additionally, users can convert their cryptocurrencies back into traditional currency, either leaving it in their exchange account for future crypto trading or withdrawing it to their regular bank account.

The Central Bank of Bahrain (CBB) introduced the crypto-asset module in 2019, outlined in Volume 6 of the CBB Rulebook. This regulatory framework provides guidelines for CAX platforms, ensuring compliance and proper operations within Bahrain.

When evaluating the suitability of a crypto-asset, the CBB considers factors such as the issuer's technological expertise, reputation, traceability, and volatility of the crypto-asset. Regulated Crypto-Asset services include order execution, dealing on one's own account, portfolio management, custody of clients' assets, and offering investment advice. Licensees may combine these services as long as it avoids potential conflicts of interest.

Certain activities, such as creating or administering crypto-assets, developing or using software for crypto-asset creation or mining, and loyalty programs, are not within the scope of regulated Crypto-Asset services.

Applicants seeking a license under the CBB's framework can choose from four categories. Importantly, for categories one to three, the legal status must be a Bahraini company with limited liability, a Bahraini joint-stock company, or a branch resident in Bahrain of a company incorporated under the laws of its territory of incorporation.

Relevant Fees

Applicants are obligated to submit a non-refundable fee of 100 Bahraini Dinars (BD) to the Central Bank of Bahrain (CBB). Upon approval of the application, licensees will then be subject to an annual license fee calculated at 0.25% of their operating expenses.

Licensing Requirements

Licensees are mandated to establish a designated place of business within Bahrain. In the case of overseas Crypto-Asset Exchanges (CAXs), approval from the CBB is required to maintain a local management premise in the Kingdom. The application process must include a comprehensive business plan and submission of application forms for all shareholders, subsidiaries, and controlled functions. Additionally, the CBB necessitates the appointment of an independent third party to conduct a readiness assessment on the licensee's risk management system, organizational structure, and operational manuals.

While Bahrain-based licensees must maintain a specified level of financial resources, overseas CAX licensees must demonstrate that their platforms are sufficiently resourced to mitigate the risks associated with their operations. Apart from appointing a licensed external auditor, licensees must assure that substantial shareholders do not pose undue risks to the platform.

To prevent the misuse of system errors, licensees must implement adequate segregation among staff arrangements, ensuring that control is not concentrated in the hands of a single individual.

Client Portfolio

Prospective licensees must ensure that their clients are at least 21 years old, are not acting as third-party agents for other organizations, and maintain a designated bank account with a licensed retail bank. It is important to note that entities such as charitable funds, sporting, social, religious, cooperative, and professional societies cannot register as clients. Licensees are also responsible for maintaining confidentiality of all client-supplied information and disclosing relevant terms, conditions, and transactions associated with their services.

Keyman Risk Management and Compliance

To address keyman risk, the CBB mandates procedures, including obtaining insurance coverage, to manage unforeseen circumstances where information becomes unavailable. This includes situations where encryption keys or passcodes to stored assets, such as wallets, become inaccessible. Licensees are additionally required to establish permanent compliance functions that effectively adhere to the responsibilities and conditions outlined in the CBB Rulebook.

Security Measures

In an effort to enforce robust network security practices, licensees are strongly advised to implement firewalls, regularly change passwords, and employ data encryption in transit and at rest. The CBB recommends the implementation of competent cybersecurity programs to ensure the availability and functionality of electronic systems, protecting them from unauthorized access. Licensees must also establish mechanisms for reporting cybersecurity risks, emerging trends, and potential breaches to initiate prompt recovery plans.

Other Relevant Requirements

Applicants have the option to appoint a legal representative, such as a law firm or professional consultancy, to prepare and submit the application on their behalf.

Licensees must ensure that, when dealing with accepted crypto assets, their proprietary affairs do not exceed 50% of the paid-up capital or net shareholders' equity (whichever is lower).

The CBB encourages licensees to adopt a well-designed Business Continuity and Disaster Recovery plan and maintain professional indemnity coverage with a minimum amount of 100,000 Bahraini Dinars from the CBB's licensed insurance firm. Among other obligations, licensees must provide regulated financial services without discrimination and conduct their activities in a fair, orderly, and transparent manner.

After Approval is Issued

Licensees are required to commence operations within six months of receiving approval from the CBB. Additionally, they are urged to promptly notify the CBB of any legal proceedings against them, breaches committed, or any susceptibility to insolvency.

Crypto Wallets

The CBB introduces two types of crypto wallets in its Rulebook. The custodial wallet gives clients limited control over their crypto-assets, while the non-custodial wallet provides clients with complete control. Licensees dealing with alternative types of crypto-assets are advised to consult the CBB.

Crypto-Asset Custody Services

The CBB outlines three acceptable types of custodial arrangements for crypto-asset custody services: in-house custodian, third-party custodian, and self-party custodian. Licensees are prohibited from trading, assigning, lending, or dealing with accepted crypto-assets unless directed otherwise by the client. Clients must be informed about the use and function of custody wallets.

Growth of CAXs in Bahrain

The increasing presence of CAXs in Bahrain is evident through the CBB's approval of well-recognized and Shari'a-compliant cryptocurrency platforms. Rain, as the first licensed Crypto-Asset Brokerage, underwent a rigorous two-year regulatory process, offering investors leading cryptocurrencies with stringent security measures. Coin MENA, having met operational and security requirements, obtained a license to operate its trading CAX services in Bahrain, providing retail and institutional investors with major cryptocurrencies and implementing robust security measures.

 

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Sun, 07 Jan 2024 00:00:00 GMT
<![CDATA[Bahrain Labour Law]]> Bahrain Labour Law

Bahrain's labor law serves as the cornerstone for regulating the employment relationship between employers and employees, ensuring fair treatment, and fostering a healthy work environment. This article provides an overview of key aspects within Bahrain's labor law, emphasizing the rights and responsibilities it establishes for both parties. Legislative Decree no. 36 of 2012 promulgate Bahrain's Labour Law.

Employment Contracts

Written employment contracts are mandatory under Bahrain's labor law. These contracts must include crucial details such as job responsibilities, working hours, compensation, and other terms of employment. This requirement aims to establish clarity and prevent disputes.

Contract for an indefinite term

When an employer terminates an employee who has an indefinite-term contract within the probationary period, (if within three months probationary period) the employee shall not be entitled to compensation. However, if that termination is an unfair dismissal, then the employee is entitled to compensation which is equivalent to one month's wages. In the event that termination takes place after the three-month probationary period, without cause then the employee shall be entitled to get compensation equivalent to two days' wages for each month of service. The minimum compensation will be one month's wages and the maximum shall be 12 months' wages.

Contract for a definite term

In the event that the employer terminates an employee's contract of employment for a definite term with or without lawful cause, then the employee will be entitled to get a compensation that is equivalent to the wages for the remaining period of the contract. If both parties do not mutually agree then a lesser compensation, shall not be less than three months' wages or the remaining period of the contract, whichever is less.

Contract for performance of a specific work

 Where the contract of employment was entered into for the performance of a specific work, and the contract is terminated by the employer before then, with or without cause, then the employee shall be entitled to compensation that is equivalent to the wages for the remaining contract period required for completion of the agreed work. This is unless If both parties do not mutually agree then a lesser compensation, shall not be less than three months' wages or the remaining period of the contract, whichever is less.

Leaving indemnity

Article 116 of the Bahraini Labour Law explains that when a worker who is not subject to the Bahrain Social Insurance Law namely a foreign employee or a Bahraini employee whose wages exceed BD 4,000 shall be entitled, to get a leaving indemnity at the rate of half a month's wage for each of the first three years of employment and one-month wages for each of the subsequent years.

Working Hours and Overtime

Bahrain's labour law defines standard working hours to prevent employee overwork and promote work-life balance. The law also outlines regulations for overtime, ensuring that employees are fairly compensated for additional hours worked.

Wage Protection

The law sets guidelines for wage calculation, payment frequency, and permissible deductions. These provisions safeguard employees' financial rights, ensuring they receive fair and timely compensation for their work.

Occupational Safety and Health

Bahrain's labour law prioritizes the safety and health of workers. Employers are obligated to provide a secure working environment, including necessary training, safety equipment, and protocols to prevent accidents and protect employees from occupational hazards.

Termination and Severance

The law stipulates procedures for terminating employment contracts, notice periods, and the rights of employees in case of dismissal. These regulations offer a fair process for both employers and employees, preventing arbitrary terminations and ensuring due consideration. Article 27 of the Labour Market Regulatory Law compels the employer to a travel ticket back to their home country.

Justified termination

Poor performance

An employer may terminate a contract of employment on the grounds of poor performance by giving the worker notice of the aspects of such inefficiency. This notice must last at least 60 days to give the employer a reasonable opportunity to be heard. Upon expiry of this period and in the event that the employee fails to achieve the required efficiency level, then the employer may terminate the contract of employment after giving 30 days prior notice of the termination and will not be entitled to get any compensation.

Redundancy

As per Article 110 of the Bahraini Labour Law, If an employer terminates a contract of employment on the grounds of total or partial closure of the establishment, scaling down of its business, or replacement of its production system then the employer may give notice to the Ministry of Labour concerning the reason for termination 30 days prior to the date of giving the worker 30 days' notice of the termination and the employee shall be entitled to receive a bonus equivalent to one half of the compensation referred to above relating to unjustified termination.

Labor Dispute Resolution

Bahrain's labor law includes mechanisms for resolving disputes between employers and employees. This may involve mediation or adjudication to reach a fair resolution, contributing to overall workplace stability. All claims related to employment must be first filed before the Labour Case Administration Office (LCAO).

Conclusion:

Bahrain's labor law plays a pivotal role in establishing a balanced and just framework for employment relationships. By addressing critical aspects such as working hours, employment contracts, wages, occupational safety, termination procedures, and dispute resolution, the law strives to create an environment where the rights of both employers and employees are protected. As Bahrain continues to evolve economically, its commitment to a robust labor regulatory framework remains essential for sustaining a fair and productive workforce.

 

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Wed, 13 Dec 2023 00:00:00 GMT
<![CDATA[Evolution of Fintech in the Middle East]]> Evolution of Fintech in the Middle East

"The major winners will be the financial services companies that embrace technology."

With a population of about 600 million people, the Middle East is one of the world's most diverse areas, covering three continents and 21 countries. It is a culturally, politically, and economically diversified region that includes the Gulf Coordination Council's six Arab members. This culture is showcased in the FinTech sectors' various stages of development across the area. Beginning in 2017, Gulf area officials and regulators began establishing forward-thinking and flexible FinTech policies. Since then, there has been a significant attempt to create more diversified, competitive, and inventive economies.  The financial sector is a critical component of the major effort to transition Gulf countries away from a strong dependence on government spending and the energy industry and toward economies fueled by diversified private-sector investments, which have lower volatility and more sustainability. Indeed, promoting robust FinTech ecosystems is seen as a key component of the Gulf Cooperation Council's economic diversification strategy. Fintech is driven by tech innovation that improves existing financial services while also providing avenues for unbanked groups to access financial services in the Middle East.

Government backing, technological advancements, and high smartphone penetration have aided the growth of start-ups in the Middle East, particularly in the Gulf Cooperation Council (GCC). From a regulatory standpoint, regulatory environments in the UAE and Bahrain have hastened the growth of Middle Eastern startups by allowing for a bespoke, firm-specific licensing system for a limited testing time. Governments can also use these sandboxes to learn about emerging technology and modify policies accordingly. The Dubai International Financial Centre (DIFC), the Abu Dhabi Global Market (ADGM), and Bahrain are the three sandboxes operating in the Middle East. E-commerce and electronic signatures are recognized across the Middle East, with more recent e-commerce statutes encompassing electronic payments in some regimes, such as Kuwait. The article majorly talks about the evolution of the fintech market in the UAE, Egypt, Qatar, Saudi, Oman, and Bahrain.

UAE

Without question, the UAE is the most advanced in its FinTech path and the most internationally competitive country in the Middle East and North Africa.

"By providing FinTechs in the UAE with a holistic, dynamic ecosystem that includes an independent regulatory framework, an English Common Law judicial system, and world's economic exchange, start-ups will be better positioned to pitch investors on their innovative solutions and expansion ambitions." - Arif Amiri, Dubai International Financial Centre's top executive. The UAE is now the globe's 25th most competitive nation, up to two places last year. Significant increases in ICT use and skills - perhaps the most crucial engines of FinTech growth potential - helped it gain traction. These elements, according to the WEF, "supplement the UAE's long-standing competitive advantages, namely one stable macroeconomic climate, a robust product market, and well-developed facilities."

After a steep 6.1 percent drop in 2021, the UAE economy could not return to pre-pandemic levels in 2021, with a growth forecast at 4% in 2021. The sluggish rebound, according to Fitch, is due to relatively strict fiscal stimulus and a slow global economic recovery, both of which are expected to impact internal and international demand.        

Corporations founded in free zones, namely the ADGM and the DIFC, should still be licensed in the jurisdictions where their goods/services will be offered. At this time, the free zones do not issue passports to residents of other countries. This means that fintech entrepreneurs will still have to navigate several different rules prescribed by the UAE Central Bank for traditional banking and financing activities, the Emirates Securities and Commodities Authority (SCA) for securities and investment activities, and the UAE Insurance Authority for insurance activities, all of which are 'onshore' in the UAE (including insurance-based investment contracts commonly sold by IFAs in the UAE).

Bahrain

Bahrain's GDP was also hampered by fiscal restraints, with the growth of only 2.7 percent, which was expected in 2021, up from a 4.2 percent decrease in 2020. According to Fitch, Bahrain's fiscal position was by far the weakest in the GCC, and reduced oil prices will hasten Bahrain's budgetary reforms. On the other hand, the Bahraini government has a long-term economic strategy, dubbed Economic Vision 2030, to move away from an enormous public sector and toward a private-sector-led economy.

As per the Milken Institute, Bahrain has the most established financial hub in the GCC, with almost 400 regulated financial institutions. It claims that, unlike the UAE, Bahrain has adopted a national strategy to FinTech advancement, with the Central Bank of Bahrain regulating the finance sector and its Governor, Rasheed Mohammed Al Maraj, pushing Bahrain as a regional FinTech powerhouse with an innovative attitude.

Qatar

Qatar is predicted to muddle over the next few years, as it expanded by 3.1 percent in 2021 after declining by 2.2 percent in 2020. Non-oil activities will benefit from companies' growth ambitions in the run-up to the FIFA World Cup in 2022, which should result in a temporary increase in tourist visits. The impending passage of important FinTech laws, according to KPMG, will "significantly assist the build-up" of the banking services ecosystem. It is related to the formation of the FinTech Division, the Fintech Regulatory Sandbox, and the Qatar FinTech Hub by the Qatar Central Bank (QFTH).

Egypt

Egypt sees an increase in fintech businesses, owing to the Egyptian government and the Central Bank of Egypt's (CBE) desire to modernize payment methods and transition to a cashless economy. Payment services, mobile cash, and smart wallets are the most developed sectors. The Egyptian government and the Central Bank of Egypt collaborate effectively with ministries and other government agencies to create and promote fintech organizations to combine into the financial system.

Legislation signed by the President established the National Council for Payment. The President, the head of the CBE, and the director of the Financial Supervisory Authority are among its members. Its mandate is to improve the adoption of cashless payment systems. An e-commerce law is being debated, and a surge of financial regulatory reform is expected to be enacted in response to the rise of digital credit lending and fundraising.

Jordan

Jordanian fintech is still in its infancy, although it is steadily rising. Local businesses are putting in place systems to settle invoices online and accept payments via cell phones. However, the Jordanian government is working on digitizing Jordanian money to decrease the consumption of cash in circulation. It is actively encouraging the use of fintech in Jordan's public and private sectors, and it is pressuring governmental and non - governmental enterprises to integrate fintech into their day-to-day operations. Fintech products are being integrated into governmental services and the financial sector by Jordan's Central Bank (CBJ). This opens up numerous potential for fintech businesses to create themselves in the country.

Oman

The Central Bank of Oman (CBO) is developing a comprehensive strategy to encourage the growth and use of financial technology (fintech) services in the Sultanate to launch Oman into a $300 billion worldwide industry by 2025. According to the Executive President of the Central Bank, Oman's fintech strategy has the potential to accelerate the roll-out of new financial and banking instruments, encourage venture capitalism, promote entrepreneurship and job creation, and spur overall economic development.

Saudi Arabia

Saudi Arabia has the macroeconomic potential to become a future fintech center. Saudi Arabia is the MENA region's largest economy, with a large, young population (almost half of whom are under the age of 24) and one of the world's highest smartphone penetration rates (65 percent). It is also generally tolerant of technological advances and creative corporate practices. Saudi Arabia's "Vision 2030" and the National Transformation Program 2020 were launched in 2016 to lay out a roadmap for the Kingdom's development over the following decade. One of the main goals of Vision 2030 and the National Transformation Program 2020 is to diversify Saudi Arabia's economy and lessen its dependency on oil. This strategy is centered on technology.

Conclusion

The ability of humans to accommodate change is at the heart of all technological growth, and fintech is the outcome of one such human trait that stimulates innovation. The financial system is transitioning to an entirely new paradigm that will address everything from digital identification to digital sovereignty. Fintech services, which provide a wide range of financial services, will soon become prevalent in the financial system and fintech start-ups. Fintech, on the other hand, will suffer a reaction if the banking sector is disrupted in any way. Fintech companies' existence has cleared the door for financial inclusion, rendering banking services more convenient.

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Wed, 02 Feb 2022 23:28:00 GMT
<![CDATA[Enforcement of Arbitral Awards in Bahrain]]> Arbitration in Bahrain and Enforcement of Arbitral Awards in Bahrain

Arbitration rules enacted by The Kingdom of Bahrain In 2009 make it the primary united states within the globe to create the equal of a loose exchange quarter for arbitration. That rules, Legislative Decree No. 30(The Decree), offers events to a settlement calling for worldwide arbitration the choice of holding the arbitration in Bahrain without subject that the courts of Bahrain would possibly intervene with, or set aside, the ensuing award, so long as the events are trying to find to implement the award most effective in some other united states. The result is the advent of what this newsletter will call the Bahrain "Free Arbitration Zone. The new regulation additionally creates a brand new Bahrain Chamber for Dispute Resolution (BCDR), that is supposed to end up each a Bahraini countrywide and a Middle Eastern nearby arbitration middle on the way to be run with the assist of the American Arbitration Association (AAA). Creating a worldwide arbitration middle from scratch is not always a clean proposition, mainly in part of the sector wherein customers of arbitration were important of the judicial shape inside which arbitration has so far must be conducted. Despite the benefit of getting nearby arbitration facilities withinside the Middle East, many companies have remained careful approximately sitting arbitrations there out of issues that nearby courts are green in managing arbitration and that awards in opposition to nearby influential parties (mainly the ones related with or desired via way of means of governments) may be set aside. In August 2015, Bahrain Law No. 9/2015 promulgating the Arbitration Law got into effect. Article 1 of the New Arbitration Law offers provisions of the UNCITRAL 1985 Model Law with its 2006 amendments on worldwide industrial arbitration will observe to any arbitration regardless of the prison courting of the events to the dispute, if the arbitration takes vicinity in Bahrain or overseas and the events to it agreed to be a situation to the Law. The provisions of the UNCITRAL Law will observe to all arbitration starting after the New Arbitration Law's access into pressure no matter whether the arbitration settlement becomes concluded earlier than such access into force. The advent of the New Arbitration Law is a breakthrough in unifying worldwide arbitration policies and making sure Bahrain is an appealing region to settle industrial disputes. According to the New Arbitration Law, Bahrain will use alternative 1 in Article 7 of the UNCITRAL Law to define and form an arbitration settlement. To ensure a successful reliance on arbitration as a method of dispute resolution, events must ensure that the arbitration settlement is consistent with and meets the standards of Article 7 of the UNCITRAL Law, which are as follows.

  • "Arbitration settlement" is a settlement reached by requiring the parties to submit to arbitration all or any positive disputes that have arisen or may additionally arise among them in respect of a specified criminal relationship, whether contractual or now not. An arbitration settlement can take the form of an arbitration clause in a contract or a separate settlement.
  • The arbitration agreement could be in writing.
  • An arbitration settlement is in writing if its content is recorded in any shape, regardless of whether the arbitration settlement or agreement was concluded orally, using conduct, or now not.
  • The requirement that an arbitration settlement is in writing is met by using digital conversation if the facts contained therein are available to be used for subsequent reference; "digital conversation" means any conversation the events have using information messages; "information message" means facts generated, sent, obtained, or saved in a digital, magnetic, optical, or comparable manner, including, but now not restricted to, digital conversation.
  • Furthermore, an arbitration settlement is in writing if it is far contained in trade of declaration and protection statements in which the life of the parties is specified.
  • A reference in a contract to any report containing an arbitration clause constitutes a written arbitration settlement, provided the connection is also used to make the clause a part of the agreement. These are the steps taken by the Bahrain government.

Due to hindrances and a lack of understanding of typical arbitration proceedings, GCC laws and international arbitration practice, particularly recognizing and enforcing foreign arbitral awards, were insufficient and required updating to conform to modern international arbitration practice fully. On the other hand, the New Arbitration Law addresses this long-standing GCC-wide issue. Article 7 of the New Arbitration Law states that no arbitrator appointed beneath the provisions of the UNCITRAL Law may be puzzled on an act or omission withinside the overall performance of his responsibilities except it turned into performed in terrible religion or due to a critical error. This provision also applies to the arbitrator's personnel or those legal through him to direct several paintings associated with the responsibilities entrusted to him. Thus, arbitrators cannot be held responsible besides in instances of terrible religion or grave error; that is a good step to boost the number of arbitrators in Bahrain, expanding an average agreement within the arbitral process. Bahrain's signature of the New York Convention at the Recognition and Enforcement of Foreign Arbitral Awards in 1988 turned into a wonderful step in the direction of the encouraging manner of opportunity dispute resolution because the conventional course of neighborhood courts may be costly and time-eating process. However, different GCC nations had been reluctant to amend or produce neighborhood rules reflecting the choice to sell arbitration committedly. The New Arbitration Law takes a massive jump ahead to make sure Bahrain's arbitration legal guidelines are in step with acceptable worldwide practices, bringing predictability in arbitral techniques and truth within the enforcement of awards within the region. Going ahead, the enactment of the New Arbitration Law will, with any luck growth the variety of events choosing Bahrain as the specific jurisdiction for their worldwide business arbitrations.

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Tue, 01 Feb 2022 10:39:00 GMT
<![CDATA[Understanding censorship Across the GCC]]> Understanding Censorship Across the GCC

Censorship is one method of the government to control media. Censorship is characterized as concealment or forbiddance of speech or composing that is considered subversive of the benefit of everyone. It happens in all manifestations of power in some degree, yet in present day times it has been of exceptional significance in its connection to government and law and order. The main reasons for censorship are to ensure the security of the current system of the government, to inhibit or limit the attempts of oppositions and to protect the religious and moral values of the society. The Arab nations always give importance to the religion. They create socio political sphere for governance. The majority of nations in GCC censor the media.

Censorship during the Arab Spring

The Arab Spring was in response to the Tunisian Revolution in 2010. There was the anti-government protests and armed rebellions that spread across Arab nations.  Bahrain has utilized censorship for reducing the Internet speeds, to prevent the spread of pictures and recordings, observing web use, and blocking controversial websites and data's. Egypt totally shut down the Internet for five days during the time of the most distress in January 2011. The government inhibited the protest through inhibiting the Social media. The government blocked certain sites or blocked internet service in times of the agitation. The social media played an important role in spreading the revolution. The success story of agitation through the social media paved a way for initiating new protests in other places or countries. 

Internet Censorship in Legal purview

The Article 12 of Universal Islamic Declaration of Human Rights by the Islamic Council of Europe in 1981 reads that every individual has the privilege to express his viewpoints and beliefs so long as he stays within the limits recommended by the Law. No one in any case is entitled to scatter falsehood which may outrage public decency or to project slanderous defamations on different people. There will be no bar on the scattering of information provided it does not imperil the security of the general public or the state which is confined within the limits imposed by the Law

Article 2 of Kuwait's constitution expresses that the religion of the State is Islam, and Islamic Law will be a fundamental source of enactment. The Oman's Constitution 1996 gives Freedom for opinion and scientific research. Everyone has the privilege to offer his opinion and publish it by listening in on others' conversations, recorded as a hard copy or in any case under the standards and conditions set by law. The given data should not invade the principal convictions of Islamic convention or the solidarity of individuals. Article 23 of Bahrain's constitution 2002 guarantees the freedom and privacy of mail, phone, and other different method for correspondence, none of which might be censored, looked, uncovered, deferred or seized except in cases determined by law and as indicated by a court.

The Qatar government had recently updated its penal code by expanding Article 136. The article takes into account the imprisonment of any individual who publishes or broadcasts contents which hurt nation's interests or public opinion. Article 62 deals with the creation of a board or a committee including Ministries of Education, Interior, Labour and Social Affairs in Qatar to censor the restriction strategies. Article 63 involves how artistic works should be inspected before they are published. Article 64 states that the Department of Publications and Publishing may coordinate the Censorship Committee and observe that specialized, social, strict, moral and social practices are being followed. Article 65 states that unexpected reviews can happen in films and different areas in Qatar to ensure that movies, advertisements and shows are appropriate.

The ideology of the Internet is to make it as free as possible from any interference.it is impossible to completely impose a ban in Internet governance, because it is like a reflection of real world. There are laws designed to regulate the cyber world that is to ensure the right to access information, freedom of speech and expression, right against the violation of these rights and illicit behaviour. In GCC countries, the issue of freedom of speech and the right to access information on the Internet is quite overriding and are new to Muslim legal thought.

Saudi Arabia hesitated for years before allowing the access to public internet in the country. After giving access to the public internet a Saudi internet service unit was framed to control its usage. It had blocked more than 20000 websites including gambling, drug and pornographic materials.

Nations like Saudi Arabia, and the United Arab Emirates, fall into the class of nations with a significant degree of Internet censorship. The filtering of Internet traffic in these nations is primarily on areas like pornography, drugs and religious twists of Islam. The authorities of Saudi Arabia and the UAE have depended on censoring Internet traffic through the Secure Computing system which created software and administrations for filtering websites Later this organization, specializing in the making of Internet security products was taken over by another American company called McAfee. In this way, software for separating web pages in Saudi Arabia and United Arab Emirates was provided by the company in the United States.

The western software Netsweeper is used for Internet filtering in the GCC nations and Smartfilter for compilation and updating of block lists.  Simultaneously, the disadvantage is the emphasis on blocking English-language resources and afterward in Arabic. Another unmistakable element of the GCC model of Internet censorship is the widespread captures of bloggers and their criminal prosecution for spreading materials that threatens the decision ruling system under the pretext of their infringement on public values. The Analysis of the Muslim religion and lifestyle, endeavours at the ironical impression of Islamic prophets, also as porn, homosexuality, and chronic drug use, are very adversely seen in all nations in the Arab world. The issue is that kind expectations to protect the Arab society from moral decay conceal the objective of keeping power in the hands of the ruling system

Conclusively, we can presume that the activities of governments to censor the virtual world in accordance with the moral and the religious perspectives of their nations are not without justification. The interest in prohibiting resources especially regarding drugs, pornography, gambling etc is not based on any political or any other interest. Simultaneously, we ought not to fail to remember that most of the dislikes and protest are exhibited through the social media. The social medias like Twitter, Facebook, and YouTube are used by the dense groups for organizing their movements. History states that the public and private media in GCC countries downplayed the dense group of protest by inhibiting the social media.

In the modern world, new strategies of correspondence and data transfer are actively emerging in both social and political processes. To frame amendments in censorship a deep research on the new ideal models, change in media landscapes, government policymakers, academics, and media professionals has to be considered. Analyses of the media laws and different regulations have to be carried out for aligning regional enactments to globally acknowledged enactments. Cultural consideration needs to be given importance to reform GCC media laws. A  Slow change is most desirable than over radical change in the legislation.

 

 

 

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Sun, 05 Dec 2021 09:29:00 GMT
<![CDATA[Real Estate Law in Bahrain Post 2021]]> Real Estate Law in Bahrain Post 2021

A new plan to promote the real estate sector is set by the Bahrain Real Estate Regulatory Authority (RERA) in accordance with the Kingdom's Economic Vision 2020 called National Plan for Real Estate. This aims to enhance Bahrain's economy by attracting the investors into the Kingdom and to enhance the growth and development of the Real Estate industry. It intends to make Bahrain a regional leader in the sector.

The RERA initiated to set a plan to implement and execute a National Real Estate Plan. The main aim in setting the national real estate plan is to set out Law 27 of 2017 and to announce the Real Estate Regulation Law by the established the authority. They have set a five pillar plan with it's the main subjects sustainability, innovation, transparency and union.

The five pillar plan has taken consideration which is generally executed in worldwide practises like requirements and safeguarding the privileges of all stakeholders and advancing the current administrative structure.

Law 27 of 2017

The new Law was issued in official Gazette 2017 and it came into existence on 2018. The new Law is Law No. 27 of 2017 which is built for the Promulgation of the Real Estate Sector Regulation Law. The New Law will cover a wide range of problems existing in real estate sector in Bahrain and it consists of 109 Articles and related legislations.

The Chapter One of the Law No. 27 of 2017 deals with the establishment of a Real Estate Regulatory Agency (RERA). It regulates the Real Estate sector in Bahrain.  The Board has numerous of tasks including the execution of a national plan and issuing operation of new law in regulation of the Real Estate sector. The other part of the New Law was the guideline of off-plan developments in Bahrain. It replaced the Law No. 28 of 2014 which previously governed all off-plan developments. The Developers who plan to sell off the properties should obtain a Developer's Licence before carrying out any development activities. After acquiring a developer license, it will be recorded in Developers register which will be kept by RERA.  A resolution from the Cabinet of Ministers will determine the requirements for obtaining, renewing and amending a Developer's Licence.

The fundamental change from the past law is that a Home Owners Association (HOA) is established up on the sale of one unit instead of 4. This will equip to form part of title deed of any common property which is jointly owned to get enrolled at the Survey and Land Registration Bureau. The New Law will enable to keep all genuine rights to incorporate long term leases mortgages and privileges of Musataha to get enlisted. The Non-compliance with the New law may attract extreme punishments which range from 2 years imprisonment and a fine of up to BHD50,000.

Pillars of new law

The first pillar is centred on the development of real estate focused technology which will help to work on the improving the proficiency of existing practices in real estate with the help of digital technologies. Improving the real estate sector will draw in global experts who are specialized in the field of real estate technology into the Kingdom. RERA likewise intend to consolidate general real estate knowledge, as well as real estate technology explicitly into Bahrain's education by making venture with the training schools to create more interest in youthful Bahrainis in this sector. Also REREA looks forward to create opportunities for Bahraini residents in the move towards modern technologies anticipating that the quick move into technology development and innovation will create high-income job openings for citizens who desire to participate in the development of this growing sector.

The second Pillar aims to harmonise the legislative procedures required to acquire endorsements for real estate development. By appointing a single central authority to act as the focal point between financial and government authorities to increase the efficiency of the overall process by making it more smooth. This news is a relief for real estate developers and investors who had to frequently manage different government agencies. RERA will provide incentive to encourage the investors and developers to invest in the Kingdom.

The third pillar sets the establishment of a real estate database at RERA. This is to furnish the investors with accurate, up to date and dependable information. It also intends to provide guarantee to the investors that all data can be acquired easily from a single and authorised source. The Government officials plan to launch the real estate database by 2022.

The pillar four encourages the use of sustainable practice explicitly within real estate sector. This will help to create an increasing awareness towards environment friendly real estate projects. It will encourage reducing the utilization and development of methods using the non-renewable resources.  This is proposed to be executed through of 'Transit-oriented development' projects. The aim of these kinds of projects is that to reduce air pollution by encouraging the foundation of public roads free from vehicles and diminishing the dependency on vehicles. This is an interesting focus on future real estate projects in Bahrain which can prompt some creative new activities.

The final pillar is in accordance with the theme of transparency and similar to the third Pillar. This aims is to secure the interests of investors within the real estate sector. Previously the current rights and restrictions over land are not always fully disclosed or transparent to buyers. The investors have to be provided with a guarantee that is they can acquire total and accurate information related to their privileges, commitments and limitations and should disclose these in all new contracts. This will be a critical new development in the sale and purchase of land in Bahrain. This will be welcomed by investors who had faced a bad experience over the transparency of land transactions.

This pillar also looks forward in the development of professionalism within the sector. That is providing the rental agents a RERA license for regulating and protecting rights of owner within the profession and thereby reducing rental disputes.

A specific bank account has to be opened for all financial receipts and valid development cost payments by developer who is on to off-plan sales development. This account is known as an escrow account. The account has to be managed by an independent escrow account agent approved by the RERA. The entire off plan sale contracts and buyer deposits must be paid directly into the escrow account. Brokers won't get any benefit from the deal off-plan contracts. Development payments are paid from the escrow account and the same transaction needs to be certified by a consulting engineer registered with the RERA. A minimum amount needs to be maintained in an escrow account. If the project is discontinued then the remaining funds should be divided equally among the buyers.

The ownership of land mostly rest on few royal family members but in certain area both Bahraini nationals and foreign firms can possess ownership on lands. For business purpose foreign investors may own property in various fields.  Foreign investors may own commercial property in certain parts Bahrain. Most of the new development projects in Bahrain the foreigners and international investors are permitted to own houses, buildings, outlets, or freehold apartments in Bahrain. The Legally purchased property cannot be given back to the owners even if such property is not occupied.

Conclusion

The New Law with the resulting goals will provide comprehensive legislation managing the Real Estate sector in Bahrain. The establishment of RERA as the regulator makes the important government power to execute the new law and regulations. With such regulation having the capacity to get a level playing field for stakeholders and give greater confidence in the market to investors.

The National Real Estate Plan contains some truly outstanding and practical aims for the real estate sector. The new law look forward to see the implementation of the aims of the plan which will make life easier for developers and investors. Overall the new law should lead to new sustainable projects in the Kingdom of Bahrain.

 

 

 

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Sat, 04 Dec 2021 21:21:00 GMT
<![CDATA[Family Law in GCC]]> Family Law in GCC

A Family is formed by considering several factors like the social, political, and monetary.

Similarly, there is a legal design in framing a family. In a net shell a family law covers two fundamental fields one is the relationship between spouses and the other is the relationship between parents and their children. For many years Muslim nations were aiming to change the rules governing marriage and divorce.

Kuwait 

In Kuwait, family and personal law are governed by religious courts. The cases will be judged only by the code of law not by any previous judgments. The courts will never be influenced by precedents. The Kuwait family law contains 347 articles and the code was enacted in 1984. It consists of codes to deal with marriage, divorce, child custody, and inheritance. To handle family and personal matters there are different courts for both the Sunni and Shi'a.

In Kuwait, Muslim marriage is an agreement between the groom and the representative of the bride's family. The marriage is formalized in the presence of an authorized person and two male witnesses.  The bride's representative can be her father, brother, uncle the officiator of the marriage can also sever as her legal representative.  The officiator prepares the agreement and this is signed by the groom, the bride's representative, the witnesses, and the officiator. The agreement also includes the details of the number of wives the groom has as the Islamic religion allows a man to have up to four 6wives of he is able to support them equally. It also contains the dowry amount.

In Muslim countries the Islamic law allows husbands to divorce their wives just by "I divorce you." Without any reasons   Under Shi'a law, to get a divorce officially the man must appear before a judge. Under Sunni law, divorce needs to be recorded only with the registrar of the personal affairs court. In both systems judges usually grant a divorce petition after giving reasonable opportunities to reconcile out of court and to seek counselling before deciding on divorce. The husbands are required to pay monthly alimony for each child born of their marriage.  In custody issues favors the mother for small children and Girls to live with their mother until they get married.  Boys can choose after attaining puberty whether to reside with their mother or father. 

Bahrain

In Bahrain, both Sunnis and Shias have their own courts that deal with personal and family issues. The Family Law comprises of all matters arising in connection with marriage like dowry, maintenance, parentage, separation, and custody. Influential sections of the religious establishment oppose a codified family law, while the government has recently demonstrated a lack of interest in pursuing the matter.

The main problem is that there are rules and norms but that they are not codified. For getting a divorce, women also need to face significant legal, financial, and societal difficulties. The Sunni men announce their divorce orally, while Shia men record their intention in writing. A Bahraini man can divorce his wife for any reason while women can only request divorce under specific circumstances but it is possible without the burden of evidence. A judicial divorce takes years during this time women are not supported financially.

Divorced Shia women retain physical custody of their sons until they are seven and their daughters until they are nine. The new personal law allows Sunni mothers to retain custody of daughters until they are 17 years of age or married whichever comes first and sons until they are 15 Even if the mother has custody, the father remains as the children's legal guardian. For custody of children, the Bahraini courts consider the religion, permanent residence, income of parents. The parents can visit their child by prior arrangement of the competent court. 

Saudi Arabia

The jurisdiction of family-related matters falls in Sharia Court. Family related matters include marriage, divorce, children and inheritance. The laws are not codified. The government promotes polygamy as an Islamic value program. Polygamy is limited to four wives for men at any one time. As a result of oil wealth, the practice of polygamy has increased even among educated Hejazis. In 2001, the Grand Mufti the highest religious authority issued an opinion, that to fight against spinsterhood polygamy is very much essential in the context of Islamic Value. Later in 2019 marriages under the age of 15 were banned and prior permission from the specialized court was necessary for the marriages under the age of 18.

Men have the right to divorce their wives without any legal justification.  The husband has to provide financial support for the divorced wife.  A woman can only obtain a divorce with the consent of her husband and, it is very difficult to obtain a judicial divorce. The fathers will have the right to have custody of sons from the age of 7 and daughters from the age of 9.

Oman

 Article 17 in Oman's Basic Law gives liberty for women to marry freely but the Personal Status Law will be the authority in dealing with guardianship, child custody and inheritance. According to Sharia law, if a Muslim man can afford the expense to take care of four wives he can get married to four wives. A Muslim woman can restrict her husband from marrying other women by entering a clause in the marriage agreement.

A man can divorce by simply saying 'I divorce you' three times. But in the case of a women even if she has good reason to seek a divorce she must go to a court. The husband is responsible to give maintenance to the divorced wife and his children from the marriage. The man can claim only after the son attains the age of ten.

Qatar

As per Sharia Law, a Muslim man can marry four wives if he is able to take care of them materially. In Qatar, the Muslim marriages are performed at the Sharia Court. A married Qatari Muslim man seeking a divorce by saying 'I divorce you' three times to his wife. The husband has to give maintenance to a divorced wife and his children from the marriage. In Qatari courts the provisions for divorce and family law matters are dealt within the code Family Law 22 of 2006.

 United Arab Emirates                                   

The UAE had improvised its family law. And it was announced on 7th November 2020. The crisp of the amendment is that the Islamic law of the Sharia will no more be used for dealing family law for the non-citizens.

There are many amendments to the country's family law. Law No. 28 of 2005 was overruled resulting in Decree-Law No. 5 of 2020 on August 28, 2020. These provisions look in the following matters. The financial support by the husband to wife, divorce by proxy, arbitration between the husband and wife and financial compensation. Earlier, Sharia law was applied to Muslim marriages, child custody issues, inheritance, maintenance etc. Till the amendment, the law allowed for non-citizens to be given option to select Sharia for their divorce proceedings or to request the court to follow the law of their home country.

Conclusion

 Family is formed by various social, political, and monetary aspects. All GCC follows Sharia law for managing the matters related to the family. The husband is given more privileges than the wife. The Man can easily divorce his wife proclaiming Talaq and he can marry four wives if he is able to take care of them and their households. Now, these nations are aiming to change the rules governing marriage and divorce.

 

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Sat, 06 Nov 2021 00:00:00 GMT
<![CDATA[closer look at Electronic Privacy Laws in GCC]]> A closer look at Electronic Privacy Laws in the GCC

The cooperation council for the Arab State of the Gulf is commonly known as Gulf Cooperation Council (GCC). It is a regional, intergovernmental, political and economic union that consists of all Arab states of the Persian Gulf except Iraq. The GCC countries are Kuwait, Bahrain, Qatar, Saudi Arabia, Oman and The UAE.

Nowadays, Electronic privacy is the centre of everybody's attention as the amount of data created today is very high with approximately 2.5 quintillion bytes per day, which is a very huge amount. So the sensitivity of data and its privacy goes up day by day. It's becoming increasingly important we should be focusing on how our data is being used.

Data is collected in various forms like when going out for shopping and swiping up your credit card, getting on a website and registering yourself, sometimes even you don't have to provide any information and you just simply accept the cookies then you have provided some part of your personal information to them which can be knowingly or unknowingly. This article is about the electronic privacy laws in GCC countries individually.

Bahrain:

In Bahrain a Personal Data Protection Law (PDPL) has been created, where the data controller has been given to data subjects that mean the control is given to the general public. The companies should be abiding by the law and to manage electronic privacy, the data protection law was drafted in 2019.

The purpose is to protect the data for the individuals and without the consent of the individual, the data should not be moved around. There is non-compliance and risk is also for companies who are not been able to manage the data they are supposed to manage as per the provision of this law. There is imprisonment for one year and a fine up to BHD 20000. The Ministry of Justice is the body that monitors the PDPL compliance maintain notice and authorisation of the register for data processing.

Consent to the process, personal data unless required by law, legitimate interest or contractual obligation. Appointment of data protection guardian is done by impartiality and independently. Transferring data for processing outside of Bahrain is not going to be a straightforward process now. The person has got a list which is now proposed in the consultation paper but anyone outside the country needs to get permission on a case to case basis.

Rights of data subjects like the right to blocking, object to direct marketing are back to the people, so they can now control the data usage and the framework for the data quality has now been expanded on one of the consultation papers.

Qatar:

In 2016, the Qatar government has introduced Law No. 13 which is related to the protection of personal data. Qatar is one of the first GCC states which have introduced the electronic privacy law, which says about the assembling, usage and release of personal data.

When the law was published in the official gazette, there was six months' time period in which compliance of law was ensured.

There electronic privacy laws levy restrictions on individuals as well as companies to distinguishable individuals using electronic means. The law provides an individual's right to give consent to the specific information which has to be published or not. Furthermore, the "specific" category include health status, birth status, religious belief, criminal records, marital status etc. It can only be procured with the permission of the Ministry of Transport and Communications.

Concerning cross border transfers, personal information collected in Qatar from different jurisdictions should be easily accessible. But this rule does not apply when it is a matter related to the national security of the country, international relations or in case of investigation of criminal offences.

Oman:

In the current situation, Oman does not have any electronic privacy law but the right to the individuals' confidential data in all modes of communication is secured as per Oman' Constitution (Royal Decree No. 101 of 96). For the protection of electronic data privacy, the sultan of Oman established a Cyber Defence Centre (Royal Decree No. 64 of 2020).

The abovementioned Cyber Defence Centre will directly report and help the Internal Security Service ("ISS") of Oman. All the mandatory laws for cybersecurity will be issued by the head of ISS and anything which goes contrary to the decree will be repealed.

As per the Electronic Transactions Law, data collected from the e-commerce websites like electronic signature contains very fewer provisions for the protection of data but it includes some necessary provisions related to dissemination and retention of data. This law is only applicable to electronic transactions.

The UAE:

The UAE introduced a new comprehensive data law in the country. This new data law is being brought as part of the national programme called "Projects of the 50". At present, UAE does not have a singular comprehensive data protection law; this would be the UAE's first comprehensive data protection law to operate across the country's mainland.  But other existing laws have been used to deal with privacy and data security matters and certain data protection provisions have applied to certain sectors.

The new data law will introduce certain rights for individuals such as the right to information, right to access, right to be forgotten. When the personal information is stored and monetized in some way or used for wrongful marketing purposes, so there will be certain provisions to stop this and it will ensure that the information will be used only with the consent and that it does not harm someone's privacy.

Kuwait:

Currently, Kuwait does not have any particular electronic privacy law. There are no specific guidelines on how retention and dissemination of data are done.  But the e-commerce law requires that any personal details like marital status, birthplace, health status, financial condition, personal status, and criminal record (if not to be disclosed) should be retained privately. The abovementioned information should not be disclosed without consulting the client and without the client's permission.

Saudi Arabia:

At present in the Kingdom of Saudi Arabia, there is no electronic privacy law related to data protection. Due to no data protection law, businesses in Saudi Arabia are getting affected as there is market awareness about the privacy of data. Currently, all the matters related to privacy in Saudi are governed by sharia law in the absence of any specific legislation.

E-commerce law came into force in 2019, which applies to all the service providers who provide goods and services through an e-commerce platform, even outside of KSA to the people residing there. It is also prohibited in this law to seek a client's details.

 

 

 

 

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Tue, 19 Oct 2021 09:55:00 GMT
<![CDATA[Economic and Fraud Provisions in Middle East]]> Economic and Fraud Provisions in the Middle East

"There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud."

- Milton Friedman

Economic fraud is a term that has been repeated over the years, so much so that the consequences it bears do not have any precedence or impact on the ones that hear it. For many companies and capitalist machinery, this term essentially triggers them to explore options to hide their fraudulent tracks and continue operating in the same manner. To have governments help them cover the tracks in certain jurisdictions ultimately defeats the purpose of the assignment.

Despite the incongruent activities of individuals, companies, and governments from the expected norm of justice in many jurisdictions, other countries are tenacious to implement a regulatory framework that will eradicate such fraudulent activities in the market. This article will discuss the economic and fraud provisions established in the Middle East, their effectiveness, and the scope of reach it possesses about financial crime.

What are the Economic and Fraud provisions in the Middle East?

If one area of the economy has seen a steady increase in the past years, it would be the economic fraud prevalent in society. Regardless of the number of provisions that jurisdictions and international organizations establish to combat financial fraud, none of them seems sufficient. The parties involved in economic fraud and other fraudulent practices are constantly evolving to cover their tracks efficiently.

Infamous scandals like Bernie Madoff and the Ponzi scheme leave one in absolute awe as it remains unclear, what is the culprit: the crime or the criminal? Many innocent parties, including employees and clients, were adversely affected by the ill-doings of these financial schemes. After the outburst of many scandals and its impact on many innocent individuals, jurisdictions are trying to fasten their pace to stay a step ahead of wrongdoers and hopefully eliminate the potential threats in the market.

The introduction of new anti-economic fraud regulations has paved the way for potential investors to feel a sense of security over their investments within the market, along with the ability of the regulations to enforce justice. Over time, people have understood that the formation and establishment of an anti-fraud legal framework are not sufficient to ensure peace and harmony in the market, an iron fist must be imposed on fraudulent parties and companies to deter them from doing such activities in the future and serving it as a lesson for other participants in the market who bear similar intentions.

The types of economic fraud can be quite varied and are spread across different industries and the scope of nature. These could include housing benefit fraud, tenancy fraud, council tax fraud, blue badge fraud, social care fraud, business rates fraud, insurance fraud, bribery, and money laundering. These are just a top layer of economic crimes prevalent in an ocean of fraudulent activities in the market. The crimes that are more coherent to the wrongdoings in the market include not declaring the business location, stating that a property is not in use while it is, dishonestly requesting for an exemption to pay for charges that are owed, or any unauthorized movement of money to make ill-gains.

Often, economic crime is caused not by companies but by customers towards companies. The highest reported crime boost in the Middle East is through customer fraud and procurement fraud, which have proved to be the most disruptive fraud within an economic crime. In a survey conducted on a global platform, the number of customer frauds was comparatively more in the Middle Eastern region.

In an ongoing effort to combat fraud together, many companies in the Middle East began investing in more stringent controls and implementation of the rules to avoid economic crime, while many others conducted a thorough examination into reasons after the occurrence of a crime in the company. Another issue that stands alongside customer fraud about its prominence is procurement fraud. This fraud entails the practice of favoring associates with vendor and supplier contracts.

All these efforts are measures taken to mitigate the risks involved and ensure that proper prevention is taken by instilling the right technology and talent to deviate from any fraudulent prone routes.

However, it is not easy to ensure that accountability will be maintained and transparent feedback is provided. Another limitation of this procedure is that advanced technologies to combat financial crime can be costly, which would further deplete if the company possesses insufficient resources to acquire and install the platform and is not equipped with properly trained employees to manage the technology. The lack of proper expertise to handle the in-place technology could attract various cyber threats, which allows a wrongdoer from any part of the world to infiltrate the company's system.

With this in mind, companies must equip themselves from the arsenal of defenses to protect themself and the financial and reputational facets of the company. The extent of damage that infiltration of the company's system can cause to the operations is quite unfathomable. It would be better for companies to leave their vault of secrets wide open than installing an IT platform that is managed poorly. The necessity of combating such insecurities is proliferating and must be countered at the earliest. One would like to believe that the efforts of the legal jurisdictions in the Middle East to battle economic crime are practical and promptly applied. However, many of the jurisdictions still fail to provide a proper implementation of the provisions established against economic crime.

The readiness of companies in the Middle East to confront the indecisive nature of economic crime and report any issues as they arise is still moving at a stagnant rate. The stark increase in cyberattacks and its potential threats is not a mystery to the companies in these regions. Nevertheless, they decide against preparing themselves in defense of such risks and attacks. The firms in the region and the governmental organizations must understand the types of threats that could arise in the economy and the nature of such economic crimes. Although this would seem like an insignificant step, this particular action could help achieve a more profound revelation of the gaps and vulnerabilities of the economy and its protective framework.

Many would argue that the relationship of the Middle East with economic crime and fraud dates back ages. All the glitz and glamour and the boom of economies are incongruent with the fraudulent activities occurring within the firms and regions. A region's legal systems cannot enforce the regulatory frameworks established to fight against economic crime if the country's government does not implement the rulings.

To know more about Economic and Fraud Provisions in the Middle East in Singapore Click here 

 

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Thu, 30 Sep 2021 14:28:00 GMT
<![CDATA[GCC VAT Agreement]]> GCC VAT Agreement

Introduction

Globally the VAT system has been around for a long time. However, for the most part, Arab countries have been operating tax-free in that respect. Over 160 countries around the world have adopted the indirect tax method to reduce the fiscal deficit and facilitate a steady increase in the country's GDP.

Following suit, an agreement between six GCC countries, namely, Bahrain, Qatar, Kuwait, Saudi Arabia, Oman, and the United Arab Emirates, had brought about a landmark change in the tax-free operations of these nations. While Saudi already had a draft VAT Law at the time of the drafting of this treaty, other GCC countries that are party to the treaty did not. However, after that, UAE and Bahrain also implemented a VAT Law in 2018 and 2019, respectively. Therefore, this treaty played a role in supplementing the development of a framework that enables countries to lay down laws regarding the implementation of the VAT system in a comprehensive manner.

The treaty is not strictly binding on the parties per se, in the sense that the countries have been provided with the option of practicing their discretion while implementing laws. Of course, there are some mandatory provisions, but there are also optional provisions to approach implementation as per their domestic and national needs.

It is important to note that this treaty is not a law; therefore, national implementation of laws in its respect is necessary for the treaty to come into force.

Background

Gulf nations heavily depend on their rich oil and energy reserves for the majority of their income. However, to survive as per global standards, diversification of the economy by utilizing other industries is becoming more and more critical. SINCE TIME IMMEMORIAL, the GCC states have been talking about improving their commercial practices and harmonizing the same with the rest of the world.

Similar to the EU, the GCC VAT Agreement also believes in a typical integrated market system. The typical market system allows a free flow of goods across nations; just like the EU, the GCC also aims to promote cross-border trade relations with their neighboring states.

Pulling inspiration from Europe, the GCC nations have made efforts to develop a common currency to strengthen their monetary union; however, those efforts were in vain due to non-acceptance by Oman and UAE.

Recent trends worldwide have required the GCC countries to pull up their socks and compete in their global market. To achieve this end, they need to diversify away from the oil and gas industry into different sectors of the economy like infrastructure, travel and tourism, VAT, etc., which is becoming a reality, slowly but surely.

Influence of Islamic Law

It is common knowledge that Shariah or Islamic law is the backbone of the legal system across the said GCC states. As per the Shariah law, there are five types of taxes, zakat playing a significant role in VAT implementation. The idea is that VAT paid to the government would allow them to provide services for the benefit of the general public. However, many GCC countries failed to institutionalize the zakat system, except Saudi Arabia. Therefore, the implementation of VAT will allow these countries to account for the funds collected.

Reasons for implementation

Dependence on oil for the majority of their revenue started to cause a deficit in the economies of GCC nations. Noticing this deficit, the International Monetary Fund (IMF) prepared a report that showed a decline in the private sector growth. Therefore, the introduction of a VAT scheme poised itself as the best solution to raise revenue. Despite VAT not being a cost-efficient exercise, global trends show that it is the most effective way of generating revenue.

The parties to the Agreement have agreed to a low rate of 5% VAT which is a good step of gradually easing into a full-fledged taxation system.

VAT benefits are not just limited to generating revenue; it facilitates consumers' discretionary spending on non-essential and harmful goods; for instance, Saudi Arabia and UAE have imposed taxes on fizzy drinks, cigarettes, etc. Further, the imposition of the Tax, even at a zero- rate, allows the government to keep in check on fraud and tax evasion, promoting economic and social growth.

Similarities between the EU and GCC VAT System

The basic principle of VAT is that its implementation differs according to the country's domestic legislation. Despite its complexities, it has been globally accepted. There are a few universally accepted principles that are implemented concerning the VAT regime, enumerated hereunder as follows;

  • The VAT is levied on a wide variety of supplies and services; this means that it is levied on all levels, right from the manufacturers to the suppliers; however, an established principle of imposing VAT is the business is not the ultimate bearer of Tax, the burden shifts from the supplier to the ultimate consumer of the product.
  • Further, VAT implementation is based on the destination principle; this principle lays down that, Tax is to be levied on the goods at its final destination. Therefore, exports can be transported free of Tax, whereas imports are liable to be taxed.
  • Legal Framework

  • The EU VAT system was incorporated by the EU Council Directives, which are essentially instructions that flow into legislation. These directives do not have the force of law but are binding on the states. The nature of the directives is quite flexible, therefore, allowing the states to take liberty in applying these directives in their domestic laws.
  • The EU Commission is the regulatory authority responsible for drafting treaties in the best interest of EU nations. The EU Council is an essential representative authority of the Commission. In EU law, treaties, regulations, and directives take precedence over domestic legislation. This precedence is so that the values of community loyalty and the direct effect of these treaties are upheld.
  • Like the EU Directives, the GCC VAT Agreement also refers to the GCC Charter and the GCC Economic Agreement. Therefore, the Charter and Economic Agreement are the basis on which the VAT system relies. The GCC VAT Agreement is also a blanket law that governs all nations' parties to the Agreement, just like the EU.
  • The GCC VAT Agreement further draws similarities with the EU VAT system since it facilitates cross-border trade activities.
  • Implementation

    Compared to the EU VAT system, VAT implementation in the GCC is more manageable, considering the volume of countries that would have to adopt the system and develop domestic laws to comply with the Agreement. The EU comprises 28 countries that require the implementation of the VAT Directives. On the other hand, six countries are party to the GCC VAT Agreement.

    Member states under both the EU and the GCC enjoy discretion about implementing the tax regime; the domestic laws may be designed as per the country's needs.

    Cross border trade

    Cross-border trade refers to the flow of trade from one state to another, as per the two distinct tax regimes, within the borders of the EU or the GCC nations, as the case may be. Both the EU and the GCC make a distinction between VAT charged on goods and services.

  • Tax is usually charged at the place where the goods end up eventually. The final destination of the goods. There are two aspects that the EU VAT system considers when it comes to the supply of goods; first being supply and the other being acquisition. The place of departure of goods is exempted from Tax, whereas the goods are acquired where Tax is imposed. Therefore, the buyer of the goods is ultimately responsible for paying VAT. This is concerning B2B.
  • In the case where goods are directly sold to the end consumer, i.e., B2C, the member state that is the supplier of goods is subject to the imposition of VAT.
  • As per the reverse charge mechanism, the consumer is liable to pay VAT through their periodic return.
  • The GCC system is very similar to the EU in this respect as well. However, all member states have yet to incorporate the Agreement into their domestic laws. The Agreement has more of a straightforward approach in that it applies the reverse charge mechanism directly to the consumers.

    Exemptions

    Both the EU and GCC have a standard, reduced, and zero-rated tax regime. However, specific sectors have been exempted from being taxed under this regime with the general public's interest in mind.

    The EU exempts VAT from being implemented on medical care, public postal services, welfare and security, and any other such goods or services that are essential. Moreover, the member states can practice their discretion to exempt VAT from imposing any other goods or services.

    The GCC exempts VAT from being charged on health, education, and domestic transport; they can further exempt Tax from being levied on; government entities, NGOs, charitable institutions, citizens of member countries, and any other sector they deem fit.

    Measures to improve the GCC VAT System

    The GCC VAT Agreement draws much inspiration from the EU VAT regime. The EU regime serves as a model law that allows the GCC to adopt any such part that would serve advantageous and omit the parts that did not align with their objectives. For example, imposing a uniform tax rate of 5% throughout the GCC was an important lesson learned from the shortfalls of the EU regime.

    Since parties to the GCC Agreement are relatively new to the whole idea of the tax regime, the actual use, that is, their registration, scope implications, should be clearly explained, and business owners should be educated about the topic to prevent legal complications. For example, double taxation.

    The objective value of Tax that has been imposed in the GCC at the rate of 5% may pose a threat to the liberty of business owners and give rise to distortion of competition in the market. The GCC has adopted the VAT system to open its market and recover from the financial crisis. Therefore, restricting competition in the market will be detrimental to the economic objectives that the Agreement aims to achieve.

    Conclusion

    The introduction of a new tax regime has its challenges. However, this is a step in the right direction to achieve economic goals such as foreign trade, competition, economic growth, and creating a global presence in the market. Further, slow and steady implementation of Tax will allow the general public to ease into the tax regime; it will also allow the government to amend the taxation as per changing trends in the economy.

    The GCC nations are foreigners to the concept of Tax since they have been running tax-free since their inception. However, model tax laws implemented worldwide allow these nations to strategically examine and implement the Tax in a way that will not cause chaos in the socio-economic climate.

    The effect of the Tax was seen to be an uncertain move since there was a possibility of a decrease in expenditure by the public. However, its implementation in Saudi, UAE, and Bahrain has shown that people have embraced this VAT regime, triggering a healthy social and economic response. 

     

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    Wed, 25 Aug 2021 07:54:00 GMT
    <![CDATA[Bahrain Investment Wharf]]> Bahrain Investment Wharf

    Introduction

    The Bahrain Investment Wharf (BIW), worth US$1.3 billion, is the Kingdom's largest privately owned and operated industrial park. This ground-breaking proposal is a mixed-use manufacturing, enterprise, logistics, commercial, and residential construction estate that spans 1.7 million square meters in the recently built Al Hidd Industrial Development Zone. BIW established a visionary relationship with the Ministry of Industry, Commerce, and Tourism, aligning its goals with the Bahraini government's goal of diversifying the national economy and promoting the industrial sector.

    What does BIW mean?

    Bahrain is a small Arab state in the Persian Gulf that is officially known as the Kingdom of Bahrain. It is a heavily oiled economy that exports a significant amount of oil and gasoline. Bahrain's government has pursued a variety of policies to boost the non-oil industry over the years. Specialized areas devoted to various sectors have been designed to concentrate on each division. The Bahrain Investment Wharf (BIW), which was established in 2005 and served as a cutting-edge for industrial investments, is one such free zone in Bahrain. 

    Where is it located? 

    Bahrain Investment Wharf is situated in the newly developed Al Hidd Industrial Area in the Kingdom of Bahrain's (Salman Industrial City).  

    What is the project type of BIW? 

    Industrial Infrastructure Development.  

    What services do they provide? 

    BIW's amenities and infrastructure include leasable industrial spaces with conference facilities, on-site labour accommodations, a comprehensive network of utilities, and the infrastructural needs to help businesses get up and running quickly. 

    Serviced Lands – 

    The Bahrain Investment Wharf masterplan has 163 serviced plots with a total leasable area of 1,270,105 square meters available for establishing a Bahraini company. The area was designed to serve a wide variety of manufacturing and enterprises.  

    The serviced plots include world-class infrastructure such as electricity, water, telecommunications, and sewerage. Furthermore, BIW's support services ensure that industrial activities are optimized by easing day-to-day market needs. 

    Pre-built Commercial Spaces – 

    The Bahrain Investment Wharf features a pre-built shopping area as well as a 250,000-square-meter dedicated industrial park. The climate in the region actively contributes to the embrace, growth, and promotion of targeted economic sectors. Full "ready to move in" commercial offices are available throughout the park, providing greater versatility to SME's and company start-ups searching for premium dedicated leasing space. 

    The following programs are available as well:

    • Conference spaces that are fully equipped
    • 24 hrs security
    • Reception and concierge services are provided on a regular basis.
    • Parking in the shade
    • Cleaning facility for the workplace on a regular basis 

    Pre-built Warehouses – 

    For companies interested in registering their Bahraini business activities in this zone, the Bahrain Investment Wharf has 90,000 square meters of pre-built warehousing and logistics areas. There is a range of private and public warehouse areas in the city that can be rented or leased depending on your needs. 

    Takhzeen, a dedicated self-storage facility that provides companies and individuals with state-of-the-art storage options, is also located there. Practically, this opens up a whole new range of possibilities for small and medium businesses looking to save money and time when it comes to setting up warehousing, small offices, and light industrial units like factories. 

    Takhzeen Self-Storage Facility

    Takhzeen is the first self-storage facility in Salman Industrial City, which was built by a BIW subsidiary on a 20,000-square-meter plot of land inside the Al Hidd Industrial Development Zone in Bahrain. 

    Takhzeen has 826 specialized storage units varying in size from 2.5 to 200 square meters with a one-month minimum tenancy period. Takhzeen specializes in offering residential, enterprise, and a range of climate-controlled storage solutions with the aim of being the region's leading self-storage company. Takhzeen offers amenities such as unrestricted 24-hour safe entry, product packaging, and more. 

    BIW Business Park

    The BIW Business Park, which opened in 2007, is a 60,703 square meter business park within the Bahrain Investment Wharf that was developed in collaboration with Inovest and Al Khaleej Development at the cost of $60 million. 

    Telecommunications, banking services, call centres, hardware assemblers, advertising manufacturers, and legal services are just a few of the industries represented at the BIW business park. Fully pre-serviced lands with state-of-the-art facilities and end-to-end facility maintenance systems are available in the industrial park. 

    Hotel & Hospitality

    The Bahrain Investment Wharf has a 19,000 square meter hotel facility that offers upscale amenities to BIW guests who intend to stay longer. The hotel has a wonderful atmosphere, great dining offerings, a 24-hour lobby bar, and a cutting-edge gym. The hotel is well-equipped for conventions, with cutting-edge technologies and meeting rooms. The hotel has its own boat dock. 

    BIW Labour Accommodations

    Since its establishment, Bahrain Investment Wharf has been committed to providing excellent services to the residential needs of companies establishing themselves within the BIW. The BIW Labour Accommodations is a model gated community with 120,000 square meters of space. 

    More than 20,000 industrial workers serving in BIW and Salman Industrial City will be accommodated in the accommodation district, which will provide shared facilities and services in a clean, stable, and hygienic living atmosphere. A grocery, hotel, pharmacy, and landscaped green areas are among the essential amenities. 

    The following programs are available as well:

    • Basketball courts and a soccer field
    • 24 hrs security
    • Prayer hall
    • Telecommunication service providers
    • Money exchange offices
    • Common Dining Area
    • Cleaning Services are also available.

    What is the leased percentage of the occupancy rate in BIW? 

    The BIW occupancy rate is 98 percent, with 60 percent already built and the remaining 38 percent undeveloped. 

    Why choose Bahrain Investment Wharf? 

    With a strategic location near major transportation routes (Bahrain International Airport, Shaikh Khalifa Bin Salman Port, and King Fahad Causeway towards Saudi Arabia), convenient industrial and commercial connectivity (Sitra industrial city, Manama and Seef central business districts), and state-of-the-art infrastructure, BIW is ready for business. 

    What is the objective of the Bahrain Investment Wharf? 

    The key goal of BIW is to contribute to Bahrain's rapid industrial development, draw FDI, and diversify the national economy by merging their operations with other regional industrial zones, ports, and logistics hubs. Furthermore, they are closely aligning themselves with the Bahraini government's national plans and initiatives, which pave the way for the achievement of the Bahrain Economic Vision 2030.

    What are the benefits of establishing a company in Bahrain Investment Wharf?

    Because of the numerous advantages that the area offers, incorporating a business company in Bahrain is a wise and lucrative investment opportunity. You can gain the following advantages by beginning a company in Bahrain:

    Tax Benefit

    At the end of the fiscal year, tax is a major problem for company investors. The Bahraini government takes the requisite measures to fully free business investors by initiating tax exemption proceedings. The government would not require company owners to pay personal taxes. The government would not require company owners to pay personal taxes. Bahrain, however, as a member of the Gulf Cooperation Council (GCC), has begun the VAT process on January 1, 2019. This VAT law applies to business companies registered in Bahrain, and they are required to pay 5% VAT. 

    Repatriation in its entirety

    In case of a company liquidation, the Bahraini government has exempted corporate investors from paying any fee. During the entire corporate cycle, business owners and customers have full freedom in repatriating the gross money spent, and earnings gained. 

    Gaining Access to the Global Market

    Bahrain is an ideal destination for business owners and developers looking to grow their operations. Due to its proximity to other GCC countries such as Iran, the United Arab Emirates, Oman, and Qatar, business investors benefit from excellent visibility and ease of entry into the international market. 

    Growing Economy 

    Bahrain has established itself as one of the fastest-growing business hubs in the world. The Bahraini government has taken a number of measures to improve the non-oil market, given the region's oil-based economy. 

    Process of Starting a Business is Simple

    The investor must complete a few steps in the company establishment process in Bahrain. If you follow the advice of a professional, the method of starting a company should be relatively simple. 

    What Bahrain Investment Wharf is ideal for? 

    Bahrain Investment Wharf is ideal for the following;

    • Investment and holdings
    • Production of materials
    • General Trading
    • Cold storage
    • Services for logistics
    • Real estate & property management
    • Management & consulting services
    • Engineering manufacturing
    • SME (Small and Medium Business)
    • Warehousing 

    What challenges does the Bahrain Investment Wharf face? 

    The reputation of BIW was an issue. Its goal was to draw high-quality inbound investors to the Kingdom, but its identity and messaging gave it a bad reputation. The brand strategy was basically appropriate for the reason, but the visualization of the strategy was markedly local, which was ineffective in attracting Foreign Direct Investment (FDI) into the region. 

    Owing to its strong vertical nature, the label was difficult to apply, and the brand touchpoints feel distant from the overarching vision of being "The Gateway to Business in the Gulf." 

    How to start a business in Bahrain Investment Wharf? 

    A business investor must take the steps below to integrate a company in Bahrain:

    Choose a business entity type:

    The first and an important step is to choose a company structure. Business investors in Bahrain can select from a wide range of business organizations, including:

    • A Foreign Company Branch
    • With Limited Liability (WLL)
    • Bahrain Shareholding Company- Public
    • Bahrain Shareholding Company- Closed
    • Single Conmandite Company 
    • Single Person Company
    • Partnership Company

    It is advised that you choose a business agency only after learning about the various forms and benefits that each entity offers. The number of available partners and the amount of money available for the initial investment determine the corporate structure.

    Select a Trade Name 

    Following the selection of the company form, the second task is to choose a business name. The company name should be carefully selected because it would eventually become the brand. Now, according to the specified guidelines, the trademark must be distinctive and must not be insulting.  

    Collect the essentials for the business

    To go on with the incorporation process, the business owner must have all of the necessary paperwork on hand. The following items are included in the general collection of materials:

    • A duly completed application for company registration 
    • Shareholder(s) or investor's passport and visa (s)
    • Owner's proof of identity
    • Ownership proof of address 
    • The business plan's blueprint 
    • Memorandum and Articles of Association drafted 
    • Business Activities List
    • Resolution of Board of Director's Resolution

    When the records have been gathered, they must be forwarded for clearance to the appropriate government agencies.

    Obtain the Business License  

    Following a thorough examination of the records, the relevant authority will issue a business license, which is a legal permit that acts as an important document for doing business.

     

     

     

    ]]>
    Fri, 09 Apr 2021 06:53:00 GMT
    <![CDATA[Pharma 2020]]> Pharma 2020

    1. What are the main laws governing the manufacture and sale of pharmaceuticals in the jurisdiction?

    Bahrain Decree-Law No. 18/1997 with Respect to the Practice of Pharmacists and Pharmaceutical Centres (as amended by Bahrain Decree-Law No. 20/2015) (the Law).

    2. Are there any significant differences in this area of law in this jurisdiction compared to jurisdictions like the US and EU?

    Bahrain Decree-Law No. 18/1997 specifies a license for opening a pharmaceutical centre will only be given for licensed Bahraini pharmacist who is at least 21 years or a company where more than one pharmacist owns at least 50% of the company shares.

    Bahrain Decree-Law No. 18/1997 also lays limits the number of pharmacies. No natural or legal person or a partner in a company may be licensed to open more than five pharmacies. This number may be exceeded by one pharmacy in any area of more than five square kilometres without an existing pharmacy, so long as a decision has been issued by the Board of Directors.

    3. Who are the main regulators governing the licensing, the sale, or the manufacture of

    pharmaceuticals in this jurisdiction?

    The National Health Regulatory Authority (the NHRA) is responsible for regulating healthcare in Bahrain.

    4. When new drugs are created, which agency is responsible for giving the permission for the sale/manufacture in this jurisdiction?

    The National Health Regulatory Authority (the NHRA).

    5. What steps must a pharmacist take before being allowed to practice in this jurisdiction?

    A Licensed Pharmacist is defined in Bahrain Decree-Law No. 18/1997 as a pharmacist licensed to practice the pharmacy profession in line with the Law. Anyone who wants to obtain a license to practice the pharmacy profession must submit an application on the application form intended for this purpose to the NHRA. Under Bahrain Decree-Law No. 18/1997, the requirements needed to obtain a license to practice are as follows:

  • To be a Bahraini national, and the Board of Directors may exempt them from this requirement if there are justifiable reasons.
  • Must hold a bachelor's degree in pharmacy or equivalent from an accredited programme.
  • Any document certifying the applicant's success in local concessions or interviews organised by a special committeeestablished for this purpose.
  • A Certificate proving that no criminal judgments have been issued against an applicant which prejudices their integrity or honour unless they have been forgiven by the relevant authorities.
  • The licensing standards are set by the NHRA. They also specify the educational qualifications and professional experience required for Bahraini nationals and non-Bahraini residents living in Bahrain.

    6. What are the requirements involving ownership and licensing of a pharmacy in this

    jurisdiction?

    Pharmaceutical Centres are defined in Bahrain Decree-Law No. 18/1997 as all type of public pharmacies, their branches and private pharmacies. A pharmaceutical centre may not be opened without obtaining a license from the NHRA first. A license for opening a pharmaceutical centre will only be given for licensed Bahraini pharmacist who are at least 21 or a company where more than one pharmacist owns at least 50% of the company's shares. If the owner dies, the pharmacy will be managed by a pharmacist for the benefit of the heirs.

    7. What rules govern the dispensing of prescription of drugs in this jurisdiction?

    Under Bahrain Decree-Law No. 18/1997, the controlled drugs may only be dispensed by a licensed pharmacist and a register must be kept of all amounts received, dispensed, the date the drug was dispensed as well as the name of the doctor who issued the prescription. The prescription must be retained for one year. The prescription must be written in clear handwriting for the pharmacist to prepare the medicine or pharmaceutical product listed without any confusion or ambiguity. The pharmacist may not replace the medicine or pharmaceutical product prescribed in the prescription with another drug. In addition, the pharmacist may, with the consent of the patient, dispense a drug similar to that prescribed in the prescription if the drug contains the same active ingredient and the same concentration in the prescribed medicine, provided the physician did not document otherwise.

    The pharmacist must refrain from dispensing a product or pharmaceutical product if they suspect an error in the prescription and must consult the relevant physician. The pharmacist does not have permission to make any changes to the medications or pharmaceutical products recorded in the prescription with respect to the quantity, type or method of use, without prior written consent from the relevant physician.

    8. Are there rules on the pricing on prescription drugs in this jurisdiction?

    All pharmacies must have an updated registry recording all medications prepared on a daily basis indicating, among other things, the price along with the relevant pharmacist signature.

    The official price of all pharmaceutical products must be declared and must be shown on the package. The pharmacies should keep a list of all the prices set by the NHRA.

    Any one who sells drugs or pharmaceutical products or health products at a price exceeding the official price set by the NHRA will be guilty of an offence. They will be jailed for one month and/or fined up to 300 Dinars.

    9. What rules apply when importing controlled substances and prescription drugs into the country?

    With the exception of pharmaceutical facilities, drugs and pharmaceutical products, including any free medical samples, may not be imported except through the pharmacy centres and subject to obtaining a license from the NHRA, in line with the conditions and procedures determined by a decision of the Board of Directors.

    Drugs and pharmaceutical products cannot be imported for personal use, whether in parcels or other packages, unless the conditions specified by a decision of the Board of Directors are met.

    The import of controlled drugs is subject to the following conditions:

  • The importer must submit a request specifying the types and quantities of drugs to be imported after reviewing the products records at the relevant section of the NHRA.
  • The approval for the import of the product complies with the accredited procedure set by international organizations.
  • 10. What are the penalties for contravention of these import rules?

    Anyone who imports medicines and/or pharmaceutical products in violation of Bahrain Decree-Law No. 18/1997 has the right to re-export the quantity within one month of the date the product is delivered at their own expense.

    The offence of violating the importing provision of Bahrain Decree-Law No. 18/1997 will lead to a fine of 200 Dinars.

    Bahrain Decree-Law No. 18/1997 prohibits the importing of drugs and pharmaceutical products for personal use. Those who violate this provision will be fined up to 100 Dinars. These fines will be accompanied confiscating all of the drugs and pharmaceutical products or health products for which offences were committed. The importer of the product will have no right to demand compensation.

    11. Do rules on import of controlled substances and prescription drugs come into play when drugs are brought into the country having been purchased overseas on the internet or having been brought into the country in transit?

    Yes.

    12. What are the main laws protecting intellectual property in the pharmaceutical industry? Are there any significant allowances in the way things work compared to jurisdictions such as the US and EU?

    Bahrain is a contracting state to the Patent Cooperation Treaty (PCT) which came into force in the Kingdom on 18 March 2007. The nationals and residents of Bahrain are themselves able to file PCT applications.

    The Gulf Cooperation Council Patent Office (GCCPO) offers a convenient alternative to filing separate applications in the GCC without the need for further validation in each country or payment of separate annuities.

    Patents are also protected in Bahrain under Bahrain Law No. 1/2004 on Patents and Utility Models (as amended by Bahrain Law No. 14/2006).

    13. Are health supplements, vitamins or other non-prescription drugs regulated in any

    particular way?

    According to Bahrain Decree No. 9/2016 in relation to Classifying Pharmaceutical Products and Health Products, a pharmaceutical product is classified as a health product or medicine, based on the Pharmaceutical Product Classification Guideline annexure to the Decree (PPC Guidelines). The health products include herbal products, products containing vitamins or minerals and other products containing specific substances like amino acids, charcoal lipids like Omega 3 and certain antiseptics.

    Before a pharmaceutical product can be sold in Bahrain, an application must be made to the NHRA and this must contain all of the necessary data supporting its quality, safety and efficacy, based on the current guidelines and procedures. PPR members review the scientific aspects of each application and reach a conclusion on the likely balance of any benefits versus risk before arriving at a decision.

    14. Are there any significant rules on the packaging of drugs in this jurisdiction?

    The official price of all pharmaceutical products must be declared and must be shown on the package in line with Bahrain Decree-Law No. 18/1997 and NHRA rules and regulations. The leaflet of each pharmaceutical drug must have the following information in both Arabic and English:

  • List of the active components and the scientific name of each component.
  • The quantities of active components in line with the required doses or regimen.
  • List components which may interfere or affect the use of the medicine or pharmaceutical product.
  • The internationally accredited therapeutic uses of the product.
  • The forms of drug doses.
  • The side effects and major adverse reactions of the product or pharmaceutical product.
  • Required precautionary measures, prohibitions and taboos.
  • Main interactions.
  • The product name and address.
  • A list of the scientific references used.
  • 15. Are those involved in virtual medicine allowed to prescribe or sell drugs to patients?

    Yes, telemedicine is legally permitted in Bahrain in line with NHRA standards.

    16. Are there any rules governing the advertising of drugs?

    The text and illustrations in the advertisements directed at doctors and health professionals must be in line with approved scientific data and must be clear and unequivocal or unambiguous. It is completely prohibited to advertise prescription drugs. To advertise non-prescription drugs, written consent from the NHRA is required. The pharmaceutical product advertisements must be consistent with the declared contents of the product and should not contain expressions contrary to public morals or which would mislead the public. No person may be engaged in the promotion of pharmaceutical product unless licensed by the State after paying the licensing fees. Those to be licensed to practice this profession must have a university degree or diploma from a credited college or institute. Drug specimens intended for advertising cannot be traded or offered for sale. These specimens must be labelled Free medical samples clearly in Arabic and English. The doctors may be provided with free samples of drugs when requested. However, it is prohibited to promote free samples to the public.

    17. What is the main legislation governing legal possession of controlled substances?

    Bahrain Law No. 15/2007 with respect to Narcotic Drugs and Psychotropic Substances.

    18. Are laboratories carrying out research with drugs required to be registered? If so, who is the regulator and what are the main steps?

    A pharmaceutical manufacturing factory will contain the necessary requirements to function and in particular, the following sections:

  • Production: containing the necessary machinery and equipment specified by the Ministry.
  • Drug Control section: includes three parts:
  • The chemical laboratory equipped with raw substances and technical equipment for analysis during the
  • production process.
  • Sterilisation laboratory equipped with modern technical equipment for the sterilisation of produced drugs.
  • Microbiology laboratory equipped with appropriate devices to measure the rate or the presence of bacteria and fungi etc.
  • 19. Are there any specific health and safety rules governing the operation of laboratories handling dangerous materials and disposal of waste substances?

    The Waste Management Department at the Supreme Council for the Environment will study the waste disposal request scientifically and accordingly accurately determine the best way to dispose of the waste.

    20. Are there any specific rules governing testing of pharmaceuticals on humans or anima ls?

    The NHRA has established clinical trials or regulatory research requirements which define the conditions under which clinical trials or research will be conducted in Bahrain. The regulatory requirements also apply to all healthcare facilities and providers, clinicians-investigators, academic centers, sponsors and third parties participating in the clinical trials or research. All research involving human beings will be reviewed by an Institutional Independent Research Ethics Committee (IREC) to ensure the appropriate ethical standards. IREC's standards and requirements are based on international regulations and standards on Good Clinical Practice, provided by leading regulatory bodies like the World Health Organization, US Food & Drug Administration, European Medicines Agency and International Conference of Technical Requirements for the Registration of Pharmaceuticals for Human Use.

    The trial subject can be any of the following:

    I. A healthy volunteer;

    II. A patient whose disease is not related to the administration of the trial product; or

    III. A patient whose disease is related to the use of the trial product.

    21. Do rules on dispensing drugs to animals differ from those in dispensing to humans?

    A licensee authorized to practice the profession will not combine the practice of pharmacy and medicine or dentistry or veterinary medicine, even if they hold the required qualifications. However, the licensee is not in violation of the practice of medicine while practising First Aid in cases of emergency or accidents in the pharmacy premises. However, the licensee must refrain from prescribing medication or other conditions in violation of the law for practising medicine.

    22. Do the rules on practicing as a pharmacist or selling drugs differ in the free zones?

    No.

    23. Do the rules on manufacturing pharmaceutical products or pharmaceutical research differ in the free zones?

    No.

    24. How do product safety and personal injury legislation operate in situations where a patient has been injured as a result of drug which was dispensed or manufactured in this jurisdiction?

    The medical complaint unit of the NHRA is responsible for studying medical complaints and judicial assignments concerning the medical errors and the disciplinary accountability for the medical error or violation of the profession code of ethics or of the law of professional practice in Bahrain. The unit is also responsible for the study of adverse events reported to the NHRA by the healthcare providers and facilities. The unit deals with all complaints with the utmost confidentiality and gives equal consideration in line with the NHRA rules and regulations. Any complaints alleging error or negligence involving death or serious harm, and those which pose an immediate threat to public safety or health will be given priority.

    25. Are there any drugs or therapies which are barred or have restrictions on their dispensing because of religious reasons?

    As an Islamic country, Bahrain has a number of laws based around Quran teachings. It is forbidden for Muslims to consume alcohol, but non-Muslims in Bahrain may purchase alcohol from licensed stores. However, getting drunk in public will lead to detentions and fines. The use, possession, and trafficking of illegal drugs are strictly prohibited. These could lead to hefty fines, jail terms and even the death penalty.

     

    ]]>
    Sun, 21 Feb 2021 13:24:00 GMT
    <![CDATA[Health & Safety 2020]]> Health & Safety 2020

    1. What is the main legislation governing health and safety in this jurisdiction?

    The primary legislation governing health and safety in Bahrain is the Occupational Health and Safety Regulations (OHS) which were introduced in 1976. These were broadly based on the UK Health and Safety at Work Act of 1974. This legislation constitutes 30 Ministerial Orders, the latest of which were passed in 2006 and 2005, but the majority of which are dated from 1976 or 1977. Since 2000, new Orders have been passed to cover first aid in the workplace, the medical examination of workers, the protection of workers from fire hazards and reporting procedures for occupational injuries and diseases.

    The 1976 Labour Law for the Private Sector promulgated by Bahrain Decree-Law No. 23/1976 is the overarching labour law, with Articles 91 to 97 relating to the general health and safety duties of employers. The Labour Inspection Department was established under this Law.

    2. What are the main differences between health & safety legislation in this jurisdiction and other major jurisdictions?

    Although Bahrain's health and safety regulations are increasingly tough, Bahraini law does not carry the weight of the UK Health & Safety at Work Act 1974 on which it is based, in terms of extent or enforcement. It is one thing to bring in legislation,but another to get organisations to comply with it.

    Unless faced with serious accidents, those who run organisations in Bahrain do not pay much pre-emptive attention to the implications of accidents, or their prevention. There is a rather conspicuous trend of production-driven businesses, such as those in construction, manufacturing, the car industry and even the education sector, of not placing safety as the top priority.

    Another deficiency is that health and safety inspectors often have little specialist knowledge. The Government invests little in their development and there are only six to eight health and safety inspectors in the country with a population of one million.

    Increasing legislation has created a need for more safety professionals in Bahrain. There is now a legal requirement that any organisation employing more than 50 people must have someone who is responsible for safety regardless of the industry.

    3. What are the main bodies responsible for health and safety monitoring, regulation and prosecution? What are their key powers?

    The primary body is the Supreme Safety Committee which is part of the Labour Ministry and is responsible for health and safety strategy in all industrial sectors, large companies and the Health, Environment, and Civil Defence Ministries. The Committee makes recommendations to the Government, such as on revising current legislation, and the need for a single Government agency, similar to the Health and Safety Executive (HSE) in the UK, to develop safety strategy and propose and enforce legislation.

    4. Following an accident or a fatality - what reporting is required? What investigations may follow?

    Bahrain Ministerial Order No. 12/2013 governs the procedures required to report occupational injuries and diseases. Under Article 3 of Bahrain Ministerial Order No. 12/2013, an employer in any establishment, branch or workplace has to notify the Labour Ministry of any injury which results in the death of a worker, a serious injury, any injury which results in the worker's absence from work for seven successive days, or vehicle accidents which occur in the establishment or workplace.

    Under Article 5 of Bahrain Ministerial Order No. 12/2013, an employer will notify the Ministry of any injury or occupational diseases they are aware of in ten days from the date of notification. Under Article 7 of Bahrain Ministerial Order No. 12/2013 a worker must also notify the Labour Ministry in writing of any employment injury suffered by them which has resulted in a serious injury or an occupational disease.

    Under Article 8 of Bahrain Ministerial Order No. 12/2013, the Ministry will conduct a technical investigation of occupational accidents, injuries and diseases.

    5. What are the main industries with specific health and safety regimes? What are the key laws and regulations covering those regimes? And who are the monitoring and enforcement bodies?

    All industrial sectors and large companies in the region have to have a health and safety regime in place. The Occupational Health and Safety (OHS) Regulations in Bahrain, which were introduced in 1976, is the primary piece of legislation regulating health and safety regimes in the country.

    The primary monitoring and enforcing body is the Supreme Safety Committee of Bahrain's Labour Ministry, which is responsible for health and safety strategy in all industrial sectors, large companies and the Health, Environment, and Civil Defence Ministries.

    6. What are the core health and safety records companies must keep?

    Under Article 13 of Bahrain Ministerial Order No. 12/2013, an employer will keep a special register in which copies of the occupational injuries and diseases forms which have been reported in line with the provisions of this Order will be deposited, provided these forms are retained for at least five years.

    7. What are the main rules governing work in extreme temperatures? What steps do companies have to take to prevent prosecution? What penalties are there for failure to comply?

    Bahrain Ministerial Order No. 24/2017 with respect to Banning the Employment of Workers in the Construction Sector during the Sun and in Open Areas between 12pm and 4pm is the key piece of legislation in the country. Article 1 of Bahrain Ministerial Order No. 24/2017 states workers whose work requires them to work under the sun and in open areas will be prohibited from working during the 12pm to 4pm during July and August every year.

    The sole exception to Bahrain Ministerial Order No. 24/2017 applies to employees working in the oil and gas sector, in addition to emergency maintenance workers, provided an employer takes the necessary precautions to protect them from heat damage.

    Any one who violates the provisions of this order will be penalised in line with Article 192 of Bahrain Law No. 36/2012 (the Labour Law for the Private Sector). Articles 52 and 53 o Bahrain Law No. 36/2012 further safeguard their well-being by stating they are not to work nights and for more than six hours a day.

    8. What are the main rules protecting the health and safety of women or young people? What steps do companies have to take to prevent prosecution? What penalties are there for failure to comply?

    To protect the health and safety of juveniles, Bahraini labour law has devoted Chapter 8 to the employment of juveniles. Article 51 states the employment of juveniles will be allowed in industries, other than those considered to be hazardous or unhealthy, in line with an Order made by the Health Minister in agreement with the Labour and Social Affairs Minister.

    Chapter 9 of the labour law safeguards the health and safety of women employed in the country. Article 59 states no woman can be employed between 8pm and 7am and Article 60 states it is prohibited to employ any woman in industries or occupations which are dangerous or unhealthy for their unborn child.

    9. What are the main rules governing work at heights or confined spaces? What steps do companies have to take to prevent prosecution? What penalties are there for failure to comply?

    The 2005 Work at Heights Regulation provide guidance with regard to considering precautions for working at height. The kind of recommendations this document offers includes the following;

  • employers and those in control of any work at height activity must make sure work is properly planned, supervised and carried out by competent people.
  • Low-risk, relatively straightforward tasks would require less effort if planned. Therefore, employers and those in control must assess the risks first.
  • A sensible, pragmatic approach must be taken when considering precautions for working at height. Factors to weigh up include the height of the task, the duration and frequency and the condition of the surface being worked on.
  • The Approved Code of Practice (ACOP) offers guidance for those who work or control work in confined spaces. This Approved Code of Practice (ACOP) and associated guidance provide practical advice on how you can comply with the requirements of the Confined Spaces Regulations 1997 (SI 1997/1713).

    10. What are the main rules governing work with dangerous substances, radiation and chemicals? What steps do companies have to take to prevent prosecution? What penalties are there for failure to comply?

    Bahrain Ministerial Order No. 9/2014 with regard to the Protection of Workers from Physical Hazards states an employer will protect their workers from radiation-exposing hazards by adopting proper means such as;

  • the isolation of radiation sources from other working places and production processes whenever practically possible, and
  • the establishment of protective barriers designated to absorb or reduce heat, radiations,
  • the provision of adequate ventilation and suitable environmental improvement means.
  • 11. Are there any rules governing 'manual handling' of heavy goods? What steps do companies have to take to prevent prosecution? What penalties are there for failure to comply?

    Under Bahrain Ministerial Order No. 38/2014, with respect to determining the required conditions and the precautionary measures for the protection of workers from mechanical hazards and work environment, a worker will not operate work equipment which is not supplied with proper precautionary means and will not disable and stop whatever protection available to them. They will report any defect or technical fault in the equipment or machines which may subject them to danger and will follow the warning directions and given instructions to preserve their safety and protection against work hazards. (Article 2)

    Article 15 of Bahrain Ministerial Order No. 38/2014 states explicitly a worker may not be asked to lift, transfer or move a heavy load suspected to cause any injury to them.

    12. Are there any rules governing working time - from a health and safety perspective? What steps do companies have to take to prevent prosecution? What penalties are there for failure to comply?

    Under Article 53 of the Bahrain Labour Law, the worker may not be effectively employed for more than eight hours a day unless otherwise agreed, provided the effective working hours do not exceed ten hours a day.

    The working hours and rest periods are to be regulated in a way which ensures no workers are present at the workplace for more than eleven hours a day. This is calculated from the time of entering the place until they leave. The rest period will be calculated as part of the hours during which the worker is present at the workplace in case the work requires them to be present in the workplace.

    13. What rights and duties do employees have to report health and safety breaches?

    Under Article 121 of the Labour Law, if a worker sustains an injury by accident arising out of or in the course of their employment, the relevant employer will have to notify the occurrence of the accident within 24 hours to

    (a) the police station in the area where the accident occurred;

    (b) the Labour and Social Affairs Ministry; and

    (c) the Health Ministry.

    14. What rights and duties do employers have to report health and safety breaches?

    With regard to employment and occupational injuries, Article 121 states the relevant worker may notify the occurrence of the accident if their condition allows them to do so. The notification will have to include the worker's name, their occupation, address, nationality and wages on the date of the accident together with a brief description of the circumstances involved and the measures taken for first-aid or medical treatment.

    15. Are premises required to meet fire standards? Is there a registration and inspection regime in place in this area?

    Bahrain Ministerial Order No. 6/2013 deals with the protection of workers from fire hazards in establishments and work sites in Bahrain. Under Article 5 of Bahrain Ministerial Order No. 6/2013, an employer will conduct an evaluation of the fire hazards at the work sites in the establishment and will take all the necessary measures and precautions to reduce the hazards of fire to the minimum level.

    Article 7 of Bahrain Ministerial Order No. 6/2013 requires adequate and suitable fire-fighting facilities will be provided and maintained at all work sites by the employer. It will be prohibited for any employer to use any work site except on obtaining a 'fire safety certificate' from the relevant authority.

    Under Article 8 of Bahrain Ministerial Order No. 6/2013, every year, an employer will entrust a qualified person to undertake the inspection of fire-fighting facilities at least once, provided the date of inspection, date of subsequent maintenance and name of the person who has carried out the inspection will be marked for the records. The fitness of the alarm systems meant for this sole purpose will be examined by a qualified person at least once every three months and the inspection results will be entered in a special register which will be maintained in the establishment.

    16. Are there specific rules around noise, vibration and lighting? What steps do companies have to take to prevent prosecution? What penalties are there for failure to comply?

    Under Bahrain Ministerial Order No. 9/2014, with respect to the protection of workers from natural hazards at establishments, an employer will protect their workers from the hazards of being exposed to intense lighting by adopting the proper means which secure their protection and reduce exposure to it (Article 8).

    With regard to noise protection, Article 4 of Bahrain Ministerial Order No. 9/2014 states an employer is responsible for taking the necessary measures by providing suitable ear protecting gear and others for the workers to reduce the noise resulting from using these devices, machines and equipment in the worksite.

    Under Article 5 of Bahrain Ministerial Order No. 9/2014, the employer will protect their workers from being subject to the hazards of vibrations by adopting proper methods to secure their protection and reduce being exposed to it, by adopting methods which include;

  • the supply of good vibration and movement dampers to stop the vibration of the entire worker's body,
  • continuous maintenance of machines and tools to prevent the increase of their emitting vibrations, and
  • the provision of personal protective and vibration reduction clothing and equipment.
  • 17. Where is the best place to discover if protective clothing may be required in specific work environments?

    Wherever there are risks to health and safety in an industry which cannot be adequately controlled in other ways, the Personal Protective Equipment at Work Regulations 1992 require an industry to supply personal protective equipment. These Regulations also require this equipment is properly assessed before use to make sure it is fit for purpose, maintained and stored properly, provided with instructions on how to use it safely and used correctly by employees.

    18. Are there any specific rules around working near or with water? What steps do companies have to take to prevent prosecution? What penalties are there for failure to comply?

    Bahrain Ministerial Order No. 15/2014 with respect to protecting workers from highly flammable liquids at establishments and worksites refers to water while delineating the meaning of highly flammable liquid is referred to as a chemical substance which, once it gets into contact with water, turns into a highly combustible gas.

    19. What are the key laws governing the safety of equipment and machinery? What are the most common breaches in this area? What are the penalties for these?

    The Labour Law in Bahrain mandates employers take the necessary precautions to protect their workers from work  environment hazards during working hours, which include providing and maintaining safe working equipment which do not constitute a hazard to the workers' safety and health. The employer is tethered by duty to maintain personal protective equipment which is appropriate for the nature of the work. The employer cannot charge workers or deduct any money from their wages in order to provide them with protective facilities and personal protective equipment.

    Manufacturers also have to consider the occupational health and safety of the operators of machineries. The machinery will have to be designed in a safe manner, after clear instructions for the use of machines have been set and after the necessary precautions to prevent any danger have been taken and trials and tests to ensure the safety of the machine have been conducted.

    20. Are there any specific rules around the transportation of dangerous goods and substances?

    The Labour Law includes a clause on the surveillance of the working environment and working practices, which mandate employers ensure safety in the use, lifting and transporting of goods or materials so they do not constitute a hazard to workers' safety and health.

    ]]>
    Sat, 20 Feb 2021 14:37:00 GMT
    <![CDATA[Franchising 2020]]> Franchising 2020

    1. Is there a specific law governing franchise relationships in this jurisdiction?

    The primary pieces of legislation with regard to franchise arrangements in Bahrain are the Commercial Agency Law, Bahrain Law No. 10/1992, as amended (the Agency Law) and its Implementing Regulation, Bahrain Regulation No. 2/1993 (the Implementing Regulations).

    2. Are there other laws which can be relevant to a franchising relationship in this jurisdiction?

    Certain provisions under the Bahrain Law of Commerce, Bahrain Decree-Law No. 7/1987 as amended (the Law of Commerce) and the Civil Code, Bahrain Decree-Law No. 19/2001 (the Civil Code) also govern a Bahraini franchising relationship significantly.

    3. Is there a specific legal definition of what constitutes a franchise in this jurisdiction?

    While Bahraini law has never issued a categorical definition of a franchise, Chapter 2 of Bahrain Law No. 10/1992 regarding the Regulation of the Commercial Agency Agreement delineates the legalities underlying a Bahraini franchise, its registration and functioning.

    4. Are franchise agreements required to be registered - and if so which agency is responsible for their registration and regulation?

    Article 13 of Bahrain Law No. 10/1992 states in no uncertain terms it does not recognise an unregistered agency and no suit may be instituted in respect thereof. The Commercial Agency Law and the Implementing Regulations therefore apply solely to locally registered distributorship or agency agreements. Under Article 13, the franchise agreement should be registered with the Industry, Commerce and Tourism Ministry (MOICT).

    However, while failure to register would bar any action under the Commercial Agency Law, this does not mean the action itself is barred. A claim can be made in general terms for contracts which fall under the Civil Code and to a certain extent, the Law of Commerce.

    5. Are franchise agreements required to be exclusive within the jurisdiction - and if so are there any particular considerations around product or area of exclusivity?

    Unlike other similar jurisdictions, Bahrain does not require exclusivity for commercial agency agreements.

    6. Are there any particular aspects around the regulation of franchise agreements in this jurisdiction which would surprise those new to the jurisdiction?

    N/A.

    7. Are there any restrictions on who can be a franchisee in this jurisdiction?

    To be eligible for registration in the Commercial Agency Directorate of the MOICT and so have a dealer agreement registered as a commercial agency, the Bahrain territory dealer must be a registered entity in Bahrain possessing the necessary features required by law, including a minimum of 51% ownership by a Bahraini.

    8. What steps are needed to register a franchise agreement?

    Under Article 17 of Bahrain Law No. 10/1992, the registration and renewal application must be submitted in the prescribed form prepared by the relevant department at the Commerce Ministry. The application should be submitted with the identification documents.

    On submission, under Article 18 of Bahrain Law No. 10/1992 the relevant department at the Commerce Ministry will come to a decision with regards to the application for registration or renewal within thirty days of the application date. They will then provide the agent, at their request, with a signed certificate evidencing registration or renewal in the Register.

    It is critical to note the directorate is well within its rights to reject the application for registration or renewal, stating the

    grounds for rejection. It will notify the relevant party with a copy of the rejection decision by registered mail. The relevant party may appeal the decision to the Commerce Minister within 30 days from the date of publication of the decision in the Official Gazette, or the date of notification of it to the relevant party. Finally, the decision with regard to the appeal will be made within 30 days of the date of submission of the appeal.

    Article 16 says the franchise registration is to be renewed within two months from the end of the first two years of its registration, or the last renewal date of the agency.

    9. What conditions are required for a franchisor to terminate a franchise agreement?

    The franchise relationship will terminate on the expiry of the prescribed period, unless renewed by the agreement of the two parties. The relevant department at the Commerce Ministry may, in the event of disagreement on renewal, cancel the registration of the agency. It can also re register it in the name of another merchant who the franchisor makes an agreement with. Where the franchisor wants to terminate the franchise relationship before the expiry of the fixed period, the consent of the franchisee must be obtained before the registration of the agency is cancelled, or re registered in another name. The franchisee will be entitled to claim compensation from the franchisor in the event of agreement termination before the expiry of the contractually-established period.

    Article 8 of Bahrain Law No. 10/1992 states the franchisee will, despite any agreement to the contrary, be entitled to claim compensation from the franchisor in the event of termination of the franchise relationship before the expiry of the fixed period, if the efforts exerted by the franchisee led to evident success in the promotion of the franchisor's products, or to the expansion of its customer base. They will be eligible for compensation if, on account of the franchisor's refusal to renew the agency agreement, the franchisee was unable to receive the commission they had earned.

    10. What conditions are required for a franchisee to terminate a franchise agreement?

    A franchisee in a franchise agreement made for an indefinite period may not withdraw untimely or without reasonable cause from the agency. If they do, they will have potentially have to compensate the franchisor for the damage resulting from the withdrawal.

    Under Article 24 of Bahrain Law No. 10/1992, the franchisee or their legal representative will, on the repudiation of the franchise agreement or the expiry of it, apply to the relevant department at the Commerce Ministry for the termination of the agreement. The application must be submitted within one month of the date of repudiation or expiry and must be accompanied by supporting documents.

    11. Under what conditions (if any) can a sub-franchise be set up?

    N/A.

    12. Are there specific duties for the franchisor?

    N/A.

    13. Are there specific duties for the franchisee?

    N/A.

    14. Which form of business entity do franchisee's generally adopt in this jurisdiction?

    The most commonly used business vehicles franchisees employ in Bahrain are the closed joint stock company (CJSC) and limited liability company, which is known as a WLL in Bahrain but is synonymous with an LLC. This is because of their flexible corporate structures.

    Foreign companies have absolute leeway to set up a branch, agency or offices, without being subject to the same provisions which are required for the formation of companies. Shelf companies may also be established and while it may be sold, its activities need approval from the Ministry.

    15. Are there specific steps the franchisor would need to take to protect their trademark and other IP rights?

    Under Article 3(e) of Bahrain Law No. 10/1992, the trade names and trademarks of the products subject to the agency must be specified.

    Bahrain is one of only a handful of countries in the MENA region in which it is possible to file a trademark either directly at a national level or internationally through WIPO via the Madrid Protocol. Trade mark registrations are obtained through the Trade Mark Office at the Industrial Property Office, which forms part of the Trade and Industry Ministry.

    Applications which are accepted by the Registrar are published in the Official Gazette for opposition purposes for 60 days. During this time, any interested party may file an opposition. If no opposition is filed, then the application will proceed to registration and a registration certificate will be issued.

    16. Can franchises be sold on? And if so under what conditions?

    In the event of the sale of the company or establishment through which the franchise operations are conducted, the franchise agreement will continue to be valid towards the franchisor provided the purchaser, or the merging company or establishment agree to the continuation of the franchise agreement. The purchasing individual or establishment will be liable for all the obligations of the previous franchisee. The liability will include, towards the purchaser, seller, merging and merged companies or establishments, all obligations provided for by Article 22 of Bahrain Law No. 10/1992.

    Article 22 states the agent to who the franchise is transferred, in the event of a sale, will purchase all the stocks of goods covered by the agency from the previous franchisee for the market price, in addition to 5% of the price unless the parties agree otherwise. The new franchisee and the franchisor will be jointly responsible for all the obligations of the previous franchisee towards a third party. This liability will be limited to the market value of the goods or services, if the liability was originally outlined for goods or services.

    In the event the principal company or corporation are sold or they merge with another company or corporation and they refuse to continue to be bound by the agency agreement, the agent will be entitled to claim compensation from the purchasing or merging company or from the new agent, if any, for any damage resulting from the discontinuation of the agency, subject to the provision of Article 22 of Bahrain Law No. 10/1992.

     

    ]]>
    Sat, 20 Feb 2021 13:53:00 GMT
    <![CDATA[Competition 2020 Bahrain]]> Competition 2020 Bahrain

    1. What is the name of the main regulator/ regulators governing the competition law in this jurisdiction?

    The Authority for Promotion and Protection of Competition.

    2. In the context of a merger acquisition in what circumstances, are the seller and/or the purchaser required to notify the competition regulator?

    The relevant party, or their representative, must submit a request to the Authority to obtain approval of market concentration. Market concentration is established when there is a shift in market control by:

    I. A merger of two or more undertakings, fully or partially;

    II. Acquiring direct or indirect control, fully or partially, over another undertaking, by one natural person or more; or

    another undertaking or more; or establishing a joint venture which undertakes all duties of a single independent

    undertaking.

    3. What steps will a competition regulator take if there are potential concerns around a

    company obtaining a dominant market position following a merger/purchase of a competitor?

    When there are potential concerns of abuse of dominant position, the Authority may initiate an investigation on its own or at the request of the relevant Minister or any serious reports and complaints.

    Before starting the investigation procedures, the Authority will notify the relevant undertaking of the reasons for the

    Authority's view that the violation has occurred or is about to occur.

    The relevant undertaking will reply to the notice within 20 days of receiving the notice. The Investigation Committee will within six months of the date of commencement of the investigation, submit a reasoned report of its findings, accompanied with the complete investigation file.

    The Authority will publish a statement with respect to the committed violation and will determine the medium and

    mechanism of publishing after the final ruling or after the period of appeal has expired.

    4. How would a dominant market position be derived?

    An undertaking is in a dominant position where it has a market share in excess of 40% in the relevant product market. An association of undertakings is presumed to be in a dominant position where they have a combined market share in excess of 60% in the relevant product market. However, an undertaking having a smaller market share than the prescribed percentages may still be considered to be in a dominant position in the relevant product market. Additional parameters will be set by the Authority to determine if an undertaking, individually or together with another undertaking enjoys a dominant position.

    5. Is it possible to appeal a decision by the competition regulator- how does this work?

    An appeal against Authority decisions can be filed by any one with interest and on payment of the prescribed fee within 30 days of becoming aware of the decision. An Appeal Tribunal, established in the Authority, will adjudicate the appeals filed.

    The Tribunal will hold the same legal powers vested in the Court under the law. The Tribunal's decision will be considered as a judgment delivered by the Civil High Court of Appeal. The Tribunal's final ruling is subject to appeal before the Court of Cassation. The provisions of the Civil and Commercial Procedure Law will apply with respect to submitting, examining and deciding the appeal.

    6. How quickly is any decision on a competition risk as a result of a merger/company purchase normally taken?

    The Authority will approve or reject the request for approval of market concentration within 90 days of the date of request.

    7. What remedies are generally taken when a dominant market position is established which would a merger or acquisition?

    The Inspectors, being Authority employees or others, delegated by the Chief Executive will carry out inspection duties for ensuring compliance with the Law.

    8. What penalties apply for failure to follow competition law in a merger or acquisition?

    To stop the violation of the Law, the Board may impose a penalty of up to 5% of the offender's daily sales. For a first time violation, the penalty will not exceed 1,000 Dinars a day and for repeat violations, within three years of the date of the decision concerning the offender's first violation, the penalty will not exceed 2,000 Dinars a day.

    An administrative penalty of at least 1% and up to 10% of the total amount of sales of products for the period of the violation and for up to three years will be imposed.

    9. Are there any rules governing the way a company seen as having a dominant market position must sell or market their products - which are the most important ones?

    An undertaking having a dominant position in the market, will not abuse that position. The abuse of a dominant position constitutes the following:

  • Directly or indirectly imposing purchase or sale prices, or other trade conditions;
  • Limiting to the detriment of consumers the production or technical development;
  • Applying dissimilar conditions concerning the prices and other terms of business, in contracts and agreements entered with suppliers or consumers;
  • Concluding a contract concerning a certain product, subject to acceptance of obligations not having any link to the subject of the original contract or agreement;
  • Refraining, with no legitimate reasoning, from concluding purchase or sale contracts with any undertaking, or selling products at a lower price than their actual cost, or completely suspending transactions with the intention of eliminating competing undertakings from the market, or cause damage which will avert the undertakings continuing their businesses.
  • 10. What are the penalties for failure to apply competition rules when selling or marketing products?

    The Board will impose a penalty of up to 5% of an offender's daily sales of products. For a first time violation, the penalty will not exceed 1,000 Dinars a day and for repeat violations, within three years from the decision date concerning the offender's first violation, the penalty will not exceed 2,000 Dinars a day.

    An administrative penalty of at least 1% and up to 10% of the total amount of sales of products for the period of the violation and for up to three years will be imposed.

    11. Are there any rules which prevent companies from colluding with competitors in the market when setting prices?

    Under Article 3 of Bahrain Law No. 31/2018, arrangements with the object or effect of hindering competition in Bahrain are prohibited. The Law, in particular, prohibits colluding in bids or proposals concerning the tenders, auctions, or practices and influencing proposed purchase or selling price of products.

    12. What are the penalties for colluding with competitors?

    Where the undertaking conducts the anti-competitive practice, the Board will impose a penalty of up to 5% of an offender's daily sales of products. For a first time violation, the penalty will not exceed 1,000 Dinars a day, and for repeat violations,within three years of the decision date concerning the offender's first violation, the penalty will not exceed 2,000 Dinars a day.

    An administrative penalty of at least 1% and up to 10% of the total amount of sales of products for the period of the violation and for up to three years will be imposed.

    13. Are there any rules governing the way a company seen as having a dominant market

    position as related to one product is able to sell or market other products?

    There are no specific rules as the rules laid down are for a company having a dominant market position in general.

    14. Are there any specific industries, which have particular competition rules? Give examples of some of the main ones- and the legislation governing this regime.

    Article 2 of Bahrain Law No. 31/2018 specifies its application. It will apply to:

  • All undertakings that carry out their economic activities in Bahrain;
  • Any arrangement or conduct which is intended to or results in anti-competition in Bahrain, even when the party or parties are not established in Bahrain; and
  • Economic activities conducted extra territorially, yet affecting competition in Bahrain.
  • The Law will not apply to:

  • Arrangements approved by international conventions which apply in Bahrain;
  • Facilities and projects owned or controlled by the State; and
  • Arrangements necessary for the use, exploitation, transfer, assignment, or license of Intellectual Property rights; provided these arrangements do not unreasonably hamper the competition or transfer and dissemination of technology.
  • 15. Do the free zones have a different competition regime from mainland?

    No. The businesses operating in Bahrain Free Zone must also comply with Bahrain Law No. 31/2018 with respect to the Competition Promotion and Protection.

    16. Are there any industries in which only state or public owned enterprises are allowed to operate? Give the main examples.

    Any private investment (foreign or Bahraini) in the petroleum extraction is allowed only under a production-sharing agreement with the Bahrain Petroleum Company (BAPCO), the state-owned petroleum company.

    The Industry, Commerce and Tourism Ministry maintains a small list of business activities which are restricted to Bahraini ownership, including press and publications, Islamic pilgrimages, clearance offices and workforce agencies.

    17. Are there any industries where fixed/state regulated pricing must apply? Give the main examples.

    The prices are fixed under Bahrain Decree-Law No. 18/1975 with respect to Fixing Prices and Control. It was amended by Bahrain Decree-Law No. 11/1977.

    18. What restrictions govern the inclusion of non-compete clauses in employee's contracts?

    The non-competition restriction is valid only if the employee is 18 at the time the contract was concluded.

     

    ]]>
    Sat, 20 Feb 2021 11:17:00 GMT
    <![CDATA[Q&A Bahrain Banks 2020]]> Q&A Bahrain Banks 2020

    1. What are the main laws regulating the banking sector in this jurisdiction and what do they cover?

    Laws relevant to the Banking sector in the Kingdom of Saudi Arabia include –

    - The Central Bank of Bahrain and Financial Institutions Law 2006

    • Bahrain Stock Exchange Law 1987;
    • Commercial Companies Law 2001;
    • Bahrain Anti-Money Laundering Law in 2001;
    • CBB Regulations and Resolutions.

    2. What is the name of the main regulators responsible for regulating the banking sector and which areas do they cover?

    The Central Bank of Bahrain (CBB) is a public body established by the Government under the Financial Institutions Law 2006 (the 2006 Law). It is responsible for maintaining monetary and financial stability in Bahrain and is also the single, integrated regulator of Bahrain's financial services sector. It succeeded the Bahrain Monetary Agency, which was established in 1973 soon after independence and which had previously carried out the Kingdom's central banking and regulatory functions.

    Article 40 of the 2006 Law provides no one may undertake a 'Regulated Service' in Bahrain unless licensed by the CBB. Regulated Services are defined as financial services provided by financial institutions, including those governed by Islamic Sharia principles. The 2006 Law also provides the CBB will issue regulations specifying the Regulated Services and organizing the provision of these services and it will supervise and control any licensees providing them.

    3. What is the definition of a bank in this jurisdiction?

    N/A.

    4. Are the same institutions able to provide regular and Islamic banking services?

    Bahrain's banking system consists of both conventional and Islamic Banks and is the largest component of the financial system, accounting for over 85% of the total financial assets. The conventional segment includes 19 retail banks, 69 wholesale banks, two specialist banks as well as 36 representative offices of overseas banks. The Islamic segment, offering a host of Sharia-compliant products and services include six retail banks and 18 wholesale banks and the numbers are increasing continuously.

    5. Are there any special regulatory requirements for those providing Islamic banking services?

    Regulated Islamic banking services consist of three activities. These are accepting Sharia money placements or deposits, managing Sharia profit-sharing investment accounts and offering Sharia financing contracts. If an institution has the requisite licence, it may be able to offer all three regulated activities alongside various supplementary activities. Islamic bank licensees must operate in compliance with Sharia economic principles and only Islamic bank licensees may hold themselves out to be fully Sharia-compliant institutions.

    Every individual Islamic bank in Bahrain has its own internal Sharia board, which determines the Sharia compliance of its products. In December 2018, there were 382 institutions and 98 retail banks registered in the banking sector, of which 21 were Islamic banks licensed by the CBB. The CBB does not interfere with this internal process but is usually very helpful and facilitates discussions about new ideas and concepts. Islamic bank licensees are divided into Islamic retail banks and Islamic wholesale banks. Specific regulatory requirements may differ between these two subcategories where appropriate to address their risk profiles.

    6. Does banking regulation operate in a different way in any freezone jurisdiction?

    N/A.

    7. What are the main steps a bank needs to take if it wishes to provide banking services in this jurisdiction?

    Chapter 2 of the Financial Institutions Law sets out the intricacies of the procedure for licensing and Article 44 lays out the application process to obtain a license.

  • Any person who wishes to provide a Regulated Service must apply for a license from the Central Bank.
  • An application must contain such particulars and information and accompanied by such documents as specified by the Central Bank.
  • Subject to the Commercial Companies Law, the Central Bank shall issue regulations specifying the requirements for offering a license to provide Regulated Services. Such requirements may include the legal form of the applicant, the location of its head office, the minimum capital and reserve requirements and the limits of capital adequacy requirements.
  • The Central Bank shall verify the application for a license to ensure that it satisfies all the conditions required, and it may ask for amendments or any additional information that it requires to assist with reaching its decision regarding the application. Such request shall be made within thirty days from the date of submission.
  • The Central Bank shall decide on the application within sixty days from the date of receiving the application complete with all the required information and documents.
  • The applicant may, at any time before a decision has been made about the application, withdraw his application or
  • make amendments to any errors therein or in the supporting documents in accordance with the Regulations issued by the Central Bank in this respect.
  • If all these conditions are met, the Central Bank will grant a license to the applicant. The Central Bank will keep a Register of Licensed Financial Intuitions on which all applications and supporting documents for licenses and any actions taken on them will be recorded.

    8. Are there any special passporting rules or exemptions for banks which already operate in other jurisdictions?

    If the bank licensee is a branch of an overseas bank, in deciding whether to grant a license, the CBB will pay very close regard to its activities elsewhere and examine how these activities are regulated. If the bank licensee is not regulated elsewhere, or in a jurisdiction which is not compliant with Basel Core Principles or FATF standards, then, a licensing application can only be considered after thorough, exhaustive enquiries into the bank's shareholders, management structure and financial position.

    9. Are there any particular laws or rules governing lending to consumers or businesses?

    N/A.

    10. Are there any particular laws or rules on guarantees?

    N/A.

    11. Are there any specific laws governing customer protection of banking clients?

    One of the primary objectives of the Central Bank, as stated in Article 3 of the Financial Institutions Law, is to protect the interests of depositors and the customers of the financial institutions and enhance the Kingdom's credibility as an

    international financial center.

    12. Who do rules on capital adequacy operate and how are they enforced?

    When a licensee is applying for a license, the requirements postulated by the Central Bank for authorization include the minimum capital and reserve requirements and the limits of capital adequacy requirements. Islamic bank licensees are required to maintain a minimum daily cash reserve balance with the CBB, which is set as a ratio of their total non-bank Dinar funds. This could be placed either by way of call, by unrestricted investment, as well as through the issuing of Dinar denominated Islamic investment certificates. The current mandated ratio is 5% and certainly may be varied by the CBB at its discretion.

    13. In the event a bank goes bankrupt does the state provide any guarantees to consumers?

    If the licensee is considered to be insolvent, the Central Bank may, under a justified resolution, assume the administration of a licensee, or appoint another person (the Administrator). Article 140 of the Law delineates the powers of the administrator. The Administrator is empowered to carry out the following without prejudice; discharge obligations of the licensee to certain creditors in preference to other creditors, if this is in the advantage of the licensee and undertake any necessary actions in the interest of the licensee and protect the interests of its customers and creditors.

    14. Are there any rules or regulations on application of interest?

    N/A.

    15. Are there laws or rules governing transactions between related parties in the banking sector?

    In Bahrain, wholesale banks have the liberty to undertake transactions without restriction, while dealing with the Government of Bahrain and its agencies, fellow Central Bank of Bahrain licensees and non-residents. For the sake of clarity, wholesale transactions may be defined in terms of transaction size (broadly, seven million Dinars or more for the activities of accepting Sharia money placements or deposits and offering Sharia financing contracts and $100,000 or more for any of the other activities which fall under the remit of regulated Islamic banking services). Islamic wholesale banks are allowed to transact in Dinars, or any other currency for any amount with the Government of Bahrain, public sector entities in the country and the Central Bank of Bahrain licensees.

    The Financial Institutions law sets out the transactions the CBB is permitted to engage in, in Article 29 of Chapter 6 on Central Bank's Transactions and Investments. The article states the Central Bank is permitted to act as agent or correspondent bank for foreign central banks, similar monetary institutions, foreign governments or their bodies or international financial institutions.

    16. Are there any activities banks are prohibited from undertaking?

    Article 42 of the Financial Institutions Law states the Central Bank is authorised to issue regulations to prohibit or restrict the marketing of, or investing in the regulated services by any unlicensed person. With regard to the prohibitions levied by this Law on the Central Bank of Bahrain, Article 31 states the Central Bank will not engage in trade or participate in any financial, commercial, agricultural, industrial or other undertakings; purchase, or retain title to real estate, except for that required for the conducting of the Central Bank's business and for the housing of its employees; advance unsecured loans accept shares or convertible public debt instruments as collateral, among others.

    17. What supervisory powers do the banking regulators have over banking activities?

    As previously established, the Central Bank of Bahrain is the single, integrated regulator of Bahrain's financial services sector. Article 39 of the Financial Institutions Law delineates the extent of the regulated services to be provided by the Central Bank, and formally authorizes the Central Bank as the supervisor of all licensees which provide the same services.

    If the powers conferred to the Central Bank prove to be insufficient for it to practice its supervision tasks over the business of the licensee, the Central Bank may seek a court order on a petition to enable the authorized investigators to enter and inspect specific premises and obtain the pertinent information, by using compelling force if it is considered necessary.

    18. What are the main penalties the banking regulators have at their disposal?

    Under the Financial Institutions Law, penalties which banking regulators can impose have five incarnations. These are the imposition of restrictions, the imposition of administrative fines, administrative proceedings, the suspension of the licensee from providing the service and public censure.

    Under Article 128 detailing the imposition of restrictions, the Central Bank may impose restrictions on the licensees and the listed companies to secure the compliance to the law, along with the terms and conditions of the issued license.

    Under Article 129 detailing the imposition of administrative fines, the Central Bank may levy on the Licensee an administrative fine not exceeding 20,000 Dinars, if the licensee breeches the law.

    Under Article 130 detailing administrative proceedings, the Central Bank may appoint an observer member on the board of directors of the licensee for a period specified by the Central Bank. This member will have the authority to participate in the deliberations of the board of directors and to give opinions on any resolutions passed by the board.

    Under Article 131 detailing the suspension of the licensee from providing the service, the Central Bank may suspend a licensee who contravenes the law from carrying out any regulated services for a period not exceeding twelve months.

    Under Article 132 detailing public censure, the Central Bank may issue a public statement setting out the breach which occurred to the law, whether this breach has been committed by the licensee, the listed company or any official of both. It is mentioned the publication should be carried out in a way proportionate to the nature and the magnitude of the violation.

    19. What happens when a bank becomes under capitalised?

    Undercapitalisation is guarded against. This is shown for the existence of the contingency reserve and the revaluation reserve. A percentage of the net profits of the Central Bank will be credited at the end of each financial year to a special Contingency Reserve account. The sums standing in the credit of the Contingency Reserve can be used for the purposes which serve the objectives of the Central Bank.

    The Revaluation Reserve has also been constructed to hold all profits resulting from the revaluation of the Central Bank's assets or liabilities in gold or foreign currencies as a result of any change in the parity-rate of the Dinar.

    20. Are there any rules on bank ownership?

    In Bahrain, finance transactions typically involve no actual movement of legal ownership and only the economic or beneficial value or ownership is transferred, which is not subject to any taxes.

    21. What are the most frequent type of enforcement actions taken in this jurisdiction?

    If a licensee fails to satisfy the Central Bank's regulatory requirements, the measures outlined in question 18 may be applied. Enforcement measures in the region have frequently included formal warnings, directions (e.g. to cease or desist from an activity), formal requests for information, adverse fit and proper findings, financial penalties or investigations. Explicit violations of the Central Bank's regulatory requirements may invite the revocation of a license and administrative or criminal sanctions.

    22. What are the rights and duties of an individual who controls a bank either as a director or for a business which owns a bank in this jurisdiction?

    N/A.

    23. Who can be legally liable if a bank fails?

    If a bank fails to fails to satisfy any of the license conditions, violates the terms of the law, fails to start business within six months from the date of the license, or ceases to carry out the licensed activity in the Kingdom, the Central Bank may amend or revoke their license. The licensee is legally liable in all of these cases.

    24. Are there any taxes levied over common banking services?

    Bahrain does not currently levy income tax, corporation tax (with the exception of oil, gas and petroleum companies who are engaged in exploration, production or refining, regardless of their place of incorporation) or capital gains tax. It also imposes no estate duty, inheritance tax or gift tax. However, it must be noted Islamic Finance transactions involving real estate may be subject to taxes. For instance, if the legal ownership of the land were to be transferred or registered, registration fees could be owed. Also notable is the fact that, on all property purchases, a registration fee of 2% is levied, which is reduced to 1.7% if registration and payment are completed within 60 days of the relevant transaction. If an Islamic financial transaction involves payments under an Ijarah, this will generally not be subject to taxation.

    Under existing Bahraini laws, payments under the bonds, Sukuk or notes will not be subject to taxation in Bahrain. No

    withholding will be required on these payments to any holder of notes and gains derived from the sale of notes will not be subject to Bahraini income, corporation or capital gains tax, While Islamic financial transactions are generally exempt from VAT if the income earned by the supplier is by way of interest, fees, commissions or commercial discounts received by Islamic Finance providers are not exempt (subject to VAT at 5%).

    25. What steps need to be taken by an individual or company which wishes to purchase a bank in this jurisdiction?

    N/A.

    26. What constitutes having control over a bank and what are the implications of having this?

    Control, with the Central Bank's approval, refers to the control established over a licensee, or taking any action which may lead to control. The notice of control shall contain the particulars and information and be accompanied by all documents which the Central Bank might specify.

    If any one acquires shares in breach of the provisions of Chapter 3 of the Financial Institutions Law on Control they will carry out the instructions issued to them by the Central Bank to transfer the shares, or refrain from exercising voting rights in respect of the shares under the procedures prescribed in these instructions.

    27. What are the main differences between banking regulation in this jurisdiction and other

    major jurisdictions such as the US and Europe?

    In Bahrain, the Central Bank of Bahrain regulates both the conduct of the financial services business in Bahrain as well as the financial institutions which provide those services. It has adopted the unitary approach. The CBB believes this approach creates a consistent and coherent regulatory model which can be applied across the board in Bahrain.

    Elsewhere, the US has adopted a dual banking system which means US banks can be chartered by one of the fifty states, or at the federal level. Most banks in the States are owned by bank holding companies, which are prohibited from controlling entities other than banks. Some bank holding companies may elect to be treated as financial holding companies, embracing a standard of activities which are financial in nature, or complementary to a financial activity. The US has a labyrinthine regulatory framework, with a myriad of regulatory agencies. The Federal Reserve is one the most critical and is supported by the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau, among others.

    28. Are there any special rules of client confidentiality and banking secrecy? If so what is their impact?

    Article 116 of the Financial Institutions Law elucidates on confidentiality and sets out the definition of confidential information. It refers to any information on the private affairs of any of the licensee's customers.

    Article 117 states confidential information must not be disclosed by a licensee unless the disclosure is done with an unequivocal approval issued by the person to who the information relates to together with the law, are in the process of executing an order issued by a competent court or, for the purpose of implementing an instruction given by the Central Bank.

    29. What is the typical time scale for becoming registered to provide banking services in this jurisdiction?

    After the license application has been given to the Central Bank, it will decide on the application within sixty days from the date of receiving the application complete with all the required information and documents. If they satisfy all of the conditions set out in the law, the licensee will become officially registered to provide banking services.

    30. What is the typical time scale for registration of a change of ownership in this jurisdiction?

    As the registration fees which accompany the transfer of ownership will be reduced to 1.7% (from 2%) if registration and payment are completed within sixty days of the transaction, it seems a fair approximation to state two months is the typical time frame for this.

    31. Are there any special rules on banking set off?

    While there is not a concrete set-off clause, the Central Bank may accept movable assets, real estate or other property as security for payment, if the ability of a debtor to repay any debt due to the Central Bank is doubtful. The Central Bank will sell the property, possessed as a result of the debtor's failure to pay the debt, as soon as market conditions permit (Article 31).

    32. Are there any special rules on closure of a bank account?

    N/A.

    33. What are the main rules on cheque issuing and bounced cheques?

    One of the critical functions of the Central Bank is to issue regulations regarding the settlement and clearing systems of cheques and other securities.

    34. What are the main rules on provision of safe deposits by banks?

    Article 4 of the Financial Institutions Law includes as one of the duties and powers of the Central Bank, the safeguarding of the the legitimate interests of licensees' customers against the risks associated with the financial services industry.

    Article 177 is devoted to the protection of deposits and other related rights. The Council may issue regulations to protect deposits of the customers of the licensee. The regulations will provide for compensating customers in cases where the licensee is unable, or appears likely to be unable to meet claims made against them.

    The regulation may provide for the formation of one or more funds and the funds are to constitute a separate corporate body, having an independent balance sheet and special regulations to be approved by a resolution issued by the Central Bank.

    35. What are the main rules on the provision of letters of credit, promissory notes or bills of exchange by banks?

    The Central Bank Buy is allowed to sell, discount and re-discount bills of exchange and promissory notes to other financial institutions.

    The Central Bank also maintains a foreign reserve which bears bills of exchange and promissory notes payable outside the Kingdom in convertible currencies.

     

     

    ]]>
    Thu, 18 Feb 2021 14:20:00 GMT
    <![CDATA[Artificial Intelligence Criminal Justice System]]> Artificial Intelligence & The Criminal Justice System

    Introduction 

    As Stephen Hawking once said, "Artificial Intelligence is either the best or the worst thing to happen to humanity." The fact that the system is constantly evolving and learning from our routine behavior allows it to adapt and become a sophisticated technology that has the potential to replace several mundane tasks that are being done by humans today. For instance, many tech-savvy organizations are using Artificial Intelligence (AI) to carry out repetitive administrative tasks such as HR, IT, Marketing etc. while this move is fruitful for the company in terms of reduced human labor and increased efficiency, it is detrimental to humans with the relevant skills being replaced by such systems. The point here being, there are various pros and cons of using artificial intelligence in every field. 

    From Terminator to Robocop, the idea of crime-fighting robots has been embedded in our minds, and its practical application would just be so profound. With the advent of AI in our daily lives, what seemed like a futuristic thought is now coming to life. The criminal justice system is increasingly turning to Artificial intelligence to elevate their law enforcement agencies and officers. The most popular use of artificial intelligence is in identifying traffic and safety violations and enforcing rules and regulations thereof; it also helps in identifying repeat offenders in that respect. Apart from using AI for identifying traffic violations, this system is also used for investigative purposes, which entails, surveillance, facial recognition etc. 

    One such case of success of AI in law enforcement was seen in China, wherein, a suspect was caught by police officials at a pop concert containing around 60,000 people. His attempts to blend in with the crowd failed and was taken by surprise as he was identified at the ticket counter by a facial recognition system. 

    The primary goal of law enforcement may be realized by intelligent systems that assure safety and security, further working towards solving and deterring crime. With the rise of artificial intelligence, police officers all over the world are relying on this technology to facilitate police work; however, artificial intelligence though beneficial, must be kept in check considering the risks that come along with it. 

    This article focuses on both the positive and the negative impact that AI may have on the criminal justice system. 

    Advantages of Use 

    The ability of a machine to respond to its external environment without human intervention is a feat in itself. This facet of human intelligence that is inculcated by the artificial intelligence system will serve highly advantageous and allow AI to be integrated permanently in our criminal justice system.

    Minimizes threat to life

    Despite AI being in its primitive stages of use in many countries in the world, it does have the potential of becoming an integral part of maintaining public safety. In case of high profile and dangerous cases, wherein the suspect is armed with a weapon, there is an impending threat to human life, however, using AI in such cases can ensure that this threat is minimized, if not completely eradicated. 

    Video and imaging analysis

    It is mammalian nature to feel tired and fatigued. This nature, therefore, sets us apart from artificial intelligence, in the sense that, while examining large amounts of video or image data there is a high possibility of error that can be prevented by the use of machines. Further, the adaptive feature of AI allows it to distinguish between facial features and behavior once an algorithm with that respect is fed into the system. For example, this AI system would be specifically useful in identifying a repeat offender in case of theft and robbery. 

    Not only does AI reduce and eliminate errors, but it also improves data collection in terms of speed, quality and specificity.  

    Further, along with analyzing videos and images, AI can also analyze sounds. For instance, if a gunshot is fired, depending on the quality of the sound, AI may be able to specifically point out the exact weapon used and estimate the caliber of the bullet fired. 

    This basically then allows the police officials to respond to the scene of the crime faster. 

    Forensic Analysis 

    Another aspect of law enforcement is the one associated with the collection and analysis of evidence. In many cases of violent crimes, especially before the development of advanced DNA collection and analysis techniques, it was very difficult to get a perfect match on the evidence collected by reason of it being too minuscule, tarnished or unviable. The challenges that such collection of evidence poses can be addressed by AI, in the sense that, sensitivity to data collection and processing of large amounts of complex data can be expedited. Along with collection and analysis of evidence, AI can also allow the creation of advanced systems for conducting an autopsy and determine the cause of death with ease. 

    Predictive Analysis

    In the law enforcement profession, police officers, investigators etc. spend years and years gaining expertise, only then are they able to anticipate the commission of a crime. However, AI in this department would facilitate in forecasting a crime based on the behavior of an individual within the environment under surveillance. Its adaptive nature can also help in predicting whether or not a criminal would revert to his criminal past or be reformed after serving a sentence. This predictive analysis system can help curb terrorist activities, transportation of illegal goods and human trafficking activities, among many others. 

    Accuracy of Judicial Decisions 

    In the case of pronouncement of judicial decisions, the predictive nature of AI may come in handy. The fact that AI can assess the risks involved with the alleged offender with respect to criminal recidivism and appearance in court may allow judges to impose stricter conditions or even relax release conditions. This system would work by analyzing, the number of offenses, the number of times the offender has committed the same offense and the number of times that he has failed to appear in court. 

    Associated Risks of Use 

    Artificial intelligence comes with its fair share of risks; it is more or less a double-edged sword. On the one hand, it facilitates ease of access to the law enforcement department; on the other hand, it allows criminals to fashion new ways of committing crimes. 

    Criminals are no strangers to technology, from the exploitation of cryptocurrencies to hacking into GPS and mobile systems. With growth and development in artificial intelligence, threats to internal and external security also increases. Therefore, law enforcement must be well- equipped in order to curb the challenges that such technology poses.

    The United Nations Interregional Crime and Justice Research Institute identified three basic dangers associated with artificial intelligence; physical attacks, digital attacks and political attacks. 

    Physical attacks are those that are associated with data poisoning, smuggling contraband through the use of drones and using armed drones that use face recognition to physically attack the target. 

    Digital attacks can range from data phishing and exploiting security systems and vulnerable online data. 

    Political Attacks are associated with infiltrating media and news portals to spread fake news which would potentially cause conflict. Moreover, political attacks on political figures by way of manipulating audio and video material that can cause detriment to the reputation of the political figure before the public.  

    A major threat is also associated with the use of arms and weapons. The fact that AI can be used to create smart weapons of mass destruction for criminal and terrorist activities is a big threat to the safety and security at a global level. An instance of the use of AI for terrorist activities was seen in the case of a planned attack on the Japanese Prime Minister, wherein, a drone was sent by the Islamic State of Iraq and Levant (ISIL), set to land on the roof of his office with an aerial unmanned explosive device.

    Further, it is also important to note that AI is merely a machine that has been fed an algorithm; therefore, it is objective in nature. To clearly analyze the possibility of an offender reverting to crime, a subjective view needs to be taken; hence, with respect to predictive analysis in case of a court hearing or otherwise, it can lead to discrimination in the criminal justice system. 

    Artificial Intelligence in the UAE

    The UAE has, since time immemorial, been constantly adapting and using the latest technologies in all aspects of life, to the point where it is now considered to be a technological hub. To further this reputation, the UAE has come up with a roadmap to integrate artificial intelligence into the economic and government system to promote growth and opportunities. 

    A national program for artificial intelligence has been set up by the UAE to achieve this end. Its vision to become a world leader through the national use of AI is projected to be realized by the year 2031. The National AI Strategy 2031, aims to achieve an AI friendly ecosystem in its governance at all levels, education, financial services and economic sector. 

    In 2018, the Dubai Police launched a surveillance system called Oyoon that translates to eyes in Arabic. This surveillance system aims to monitor individuals or vehicles through a wide network of cameras, and this surveillance system basically aims to predict crime by raising any red flags identified in the environment with reference to the database that has already been fed to the system. This system allowed the arrest of around 300 suspects in the year 2018. 

    As per recent reports, the Dubai Police is working with IBM and Google to develop AI technology under its Smart Dubai 2021 initiative that would create a robot police force that would take the edge off the human police force in terms of patrolling residential areas and other public spaces. This real-life Robo Cop is said to be equipped with live imaging, facial recognition and a system for reporting crime. 

    The development of AI is still at the primitive stage; therefore, no legislations have been enacted to regulate that sector. However, the Ministry of Artificial Intelligence is said to develop legislations and frameworks that will regulate technologies in government and federal institutions. 

    Artificial Intelligence in the MENA Region 

    Apart from its growth in the UAE, many other countries in the Middle East and North Africa region are adopting artificial intelligence in their governance and justice system. The use of AI is quite recent; therefore, not many developments have been made in that respect. But, these countries have started to take steps to integrate AI and look towards the creation of smart cities. 

    Bahrain 

    As a step towards achieving their 2030 Vision, the Information and Government Authority of Bahrain organized a two-day event in 2018 for establishing and recognizing the importance of AI in developing smart cities as per the country's planning document. 

    Egypt

    The Egyptian Authority of Finance Control has laid down provisions to control financial transactions using AI. Further, the Egyptian National Telecom Authority aims to explore interconnectivity through the use of AI. 

    Saudi Arabia 

    KSA has also taken steps to include AI in its strategic planning document as part of their Vision of 2030. It has already started using AI for the purpose of Investment. It also attended the Conference on Artificial Intelligence and Robotics in 2017, though it has not seen much light in the law enforcement sector, Saudi is slowly inching towards its usage by beginning work on smart cities industrial zones.  

    Many more countries in the region as well as all over the world are adopting AI as a part of creating a smarter and futuristic nation in different sectors, therefore, enhancing and paving the way for a cohesive criminal justice ecosystem. 

    Conclusion

    Although the use of artificial intelligence is in its primitive stages, its future seems bright, provided it is used in an ethical manner. Further, the law enforcement community might not be well versed with technology; therefore, the implementation of the AI system needs to be gradual. Once law enforcement officials are able to gradually familiarize themselves with the technology, its use will become efficient and effective. 

    ]]>
    Sun, 06 Dec 2020 15:18:00 GMT
    <![CDATA[Crypto Asset Exchange – Bahrain]]> Crypto Asset Exchange – Bahrain

    Introduction

    Cryptocurrencies gained traction all across the world since its inception, considering this growth in popularity and use, industry experts, praise its potential. This digital currency went from being a mere concept to virtual reality. In the Gulf Region, Bahrain and Abu Dhabi are a leading hub for digital currencies, Blockchain and cryptocurrencies. On the other hand, many gulf countries and countries all across the world are skeptical about the integration of cryptocurrencies within their economy. 

    Considering this skepticism, governments are taking steps to regulate crypto assets in order to diversify their economies and attracting cryptocurrency firms. In keeping with this aim of development, it should be kept in mind that, these digital assets are accompanied with a lot of risks; therefore, it becomes important to strike the right regulatory balance so that the risks harmonize with the aim of economic growth. 

    After extensive deliberation, planning and identifying the potential threats that can arise in dealing with crypto assets the Central Bank of Bahrain has emerged with Regulations in order to regulate digital capital markets, more specifically crypto assets.  

    CBB Regulations

    The Central Bank of Bahrain is responsible for regulating the capital markets in the country, now inclusive of cryptocurrency and Blockchain companies. In early 2019, the CBB approved the final rules and regulations in the CBB Rulebook under Volume 6 that would permit cryptocurrency usage in the Kingdom. The Rules cover areas like licensing, capital requirements, risk management, control environments, anti-money laundering/ anti-counterfeiting, countering funding terrorism, business conduct standards, reporting rules and cybersecurity regulations. 

    Despite the growth of this digital currency, banks and financial institutions are still iffy about the advantages of digital currencies and are therefore reluctant to use the same. Studies conducted all across the world have shown the potential that this digital currency holds and the fact that it is capable of impacting sectors beyond the financial sector such as the education sector, supply chain etc. Under the Rulebook, the crypto assets are defined as virtual, digital assets or tokens operating on a Blockchain platform that is protected by cryptography. These crypto-assets are offered by Crypto Asset Platform Operators or CPOs; these CPOs act as a principal or agent that facilitates custody of crypto assets on behalf of their clients.

    Crypto Regulatory Sandbox

    The term crypto regulatory sandbox is very common in the world of Fintech. This term basically refers to space wherein companies that engage in Fintech transactions can test out their code before deploying it globally. This is a sandbox, and the companies are exempt from some regulations so that they can test out their innovations without the fear of breaking the law. 

    In Bahrain, there are about 30 companies that have been approved for the Regulatory Sandbox by the CBB; these companies comprise of CPOs and exchanges. The Bahraini Regulatory Sandbox allows companies to test their technology and innovation solutions in the financial and/ or the Fintech sector. 

    Capital Requirements 

    The CBB Regulations divide types of crypto assets services into four categories according to the capital requirements for each category. Further, it also enumerates the different set of services that the CPO can provide. The categories are enumerated hereunder;

    Category 1 

  • The first category is concerned with entities that act as an investment advisory to potential investors and provide services like receipt and transmission of orders. 
  • The Rulebook also imposes certain obligations on the Licensee:
  • the Licensee is not entitled to hold any money or assets that belong to the client concerned;
  • the Licensee shall refrain from receiving fees and commission from any party other than the client;
  • the Licensee must not operate a crypto asset exchange; and
  • the minimum capital requirement, in this case, is BHD 25,000.
  •  Category 2 

  • Entities that provide; portfolio management services, crypto-asset custody, investment advisory, or are accepted as an agent in that sphere fall under this category. 
  • The Licensee may deal as a principle, which means that the agent may act on behalf of the client and hold and control the assets of the client. However, this does not allow the Licensee to deal from their own account. 
  • The minimum capital requirement, in this case, is BHD 100,000.
  • Category 3 

  • This category involves entities that act as a principal and an agent and trade-in accepted crypto assets, including activities like portfolio management, investment advisory and crypto-asset custody. 
  • In this category, the Licensee may deal in their own account and conduct dealings as a principle, however, these cannot operate a crypto-asset exchange. 
  • The minimum capital requirement, in this case, is BHD 200,000.
  • Category 4 

  • This category is concerned with entities that operate a licensed crypto-asset exchange, including services concerned with custody services for crypto assets. 
  • The Licensee, in this case, may not engage in matched principal trading and must not execute client orders against proprietary capital. 
  • The minimum capital requirement, in this case, is BHD 300,000.
  • These CBB must ensure, at its discretion, the financial integrity of the Licensees considering their ongoing business operations. The capital requirements encompass paid-up share capital, not inclusive of losses, this paid-up share capital must be deposited to local Bahraini banks and evidence thereof are to be presented to the CBB as and when requested. 

    In addition to capital requirements, the Licensee is supposed to maintain professional indemnity insurance at a minimum of BHD 100,000 by an insurance firm approved by the CBB.  

    Licensing Requirements 

    The CBB lays down eligibility criteria for investors who wish to register themselves with the licensees; the applicant must be a legal person either incorporated in the Kingdom of Bahrain or overseas in accordance with the law at the time being in force; a natural person may also register themselves as long as they are above the age of 21. 

    The CBB recognizes and regulates the following types of services with respect to crypto-assets:

  • Regulated crypto-asset services;
  • Execution of orders on behalf of clients;
  • Dealing on own account;
  • Portfolio management; 
  • Crypto asset custodian; 
  • Investment advice; and
  • Crypto asset exchange.
  • The CBB further also lays down the activities that are excluded from regulation:

  • Creation or administration of crypto assets;
  • Development, dissemination or use of software for creation or mining of crypto assets; and
  • Loyalty program.
  • No person is entitled to conduct activities mentioned above, in the market within the territory of Bahrain without obtaining a license from the CBB. 

    Further, the CBB also lays down requirements concerning the legal status of the applicants, as follows:

  • In case of category 1, 2 and 3 – the applicant must be a Bahraini Limited Liability Company; or a branch resident in Bahrain of a company incorporated under the laws of its territory of incorporation; or a Bahrain Joint Stock Company. 
  • In the case of category 4 – the applicant must be; a Bahraini Joint Stock Company or a branch resident in Bahrain of a company incorporated under the laws of its territory of incorporation. 
  • Any person desirous of obtaining a license must duly submit an Application for a License accompanied by a cover letter duly signed by an authorized signatory. This letter is to be submitted to the CBB and addressed to the Licensing Directorate. The documents to be accompanied with the Application for License are as follows:

  • Application for authorization of Shareholders;
  • Application for approved persons;
  • A comprehensive business plan;
  • In case of an overseas company, a copy of the commercial registration, license from a competent authority or any such equivalent document;  
  • In case of an existing Bahraini company, the commercial registration certificate; 
  • Certified copy of the Board resolution, confirming its decision to seek CBB license; 
  • A copy of the MOA and AOA; and
  • Any other such documents that are mentioned in the CRA 1.2 of the CBB Regulations Volume 6.
  • Once all the documents mentioned above are in order and submitted to the concerned authority, the CBB will review the same and duly inform and advise the applicant in writing about either of the following:

  • Granting application without conditions;
  • Granting application with conditions; and
  • Refusal of application, in this case, the CBB is required to clearly state the grounds under with the application was refused. 
  • By law, the CBB is required to announce the decision and inform the applicant about the acceptance or refusal within 60 days of submission of all such documentation required by the CBB. Once approved, the decision to grant license shall be published in the Official Gazette and in two local newspapers, one in English and one in Arabic. 

    The applicant seeking grant of license has to pay a non-refundable application license fee of BHD 100 at the time of submission of the application to the CBB. It is to be noted that an approved person is not required to pay any such applicable fees. 

    Accepted Crypto Assets

    The authority to determine the suitability of crypto assets lies with the CBB. Therefore, only after the approval of the CBB with respect to the acceptability of the crypto assets will the Licensee be able to deal in the same. Further, certain factors are considered by the CBB for approving crypto assets as under-regulated crypto-asset services, as follows:

  • The track record, reputation and technological experience of the issuer and the software developers;
  • The issuer's cybersecurity systems and controls; 
  • Availability of a reliable multi-signature hardware wallet solution; 
  • Protocols and underlying infrastructure;
  • Whether the crypto assets have been traded on any sidechains;
  • Other crypto-asset exchanges on which the crypto asset has been traded; and 
  • All such factors that are enumerated under CRA 4.3.3 .
  •  Ongoing obligations and Disclosures

    In CRA 4.1 to 4.12, the CBB imposes certain obligations upon the licensees, including but not limited to; ensuring fair, transparent and orderly dealings of activities, managing risks associated with the business and operations, providing clients with sufficient information to facilitate decision making, maintain fair treatment of clients and take into consideration the complaints submitted by clients. 

    As part of establishing a trustworthy relationship with clients, the Licensee must disclose any such risk that may arise and may come to the knowledge of the Licensee regarding the crypto assets. This information must be disclosed in a clear and conspicuous manner along with the rights and liabilities imposed on the client, in both the Arabic and English language. 

    Further, the Licensee is required to:

  • Maintain proper records and books in connection with the crypto-assets;
  • Maintain confidentiality of all client information; and
  • Maintain records of telephonic conversations and electronic communications, and all such matters as may be required by the CBB.
  • Conclusion 

    Many countries have banned cryptocurrencies considering its dubious presence. The rationale behind this is that crypto-assets can easily turn into a treacherous scheme to defraud investors. The problem with cryptographic assets is that, since it is in the digital form, once stolen it cannot be traced, one example of such a theft is Coin Check which was the world's biggest crypto theft, thereafter, there have been numerous scams and hacks within the crypto world. Therefore, it is totally understandable where the skepticism against the use of cryptocurrencies arises. 

    On the flipside, billions of people all over the world have benefitted from dealing in crypto-assets and entering the financial market. This market is in a somewhat grey area all over the world; however, countries are striving to regulate the use of these assets through guidelines and regulations that would allow them to make use of crypto-assets to benefit the economy. 

     

    ]]>
    Sun, 06 Dec 2020 14:45:00 GMT
    <![CDATA[Rail Infrasructure Projectse GCC]]> Rail Infrasructure Projects in the GCC

    Rail Projects are always an ambitious and expensive affair every country hopes for, not to mention the long time periods required to complete and establish such projects as operational. While providing extensive environmental benefits, reducing the pollution created by cars and other heavy operational 18 wheelers, the rail project would also provide for economic and infrastructural benefits. In this piece, we shall discuss the GCC Rail Project, also known as the Gulf Railway, which has been envisioned and in the works for over a decade, its benefits, risks, and disadvantages. 

    Since the beginning of time, a developed railway network is considered synonymous with prosperity and progress of a nation. A well-connected country is a well-developed country. As is the case, various GCC member countries have undertaken or are in the process of undertaking various rail-related projects. While these projects are expensive, governments in the Middle East have allotted their income from Oil, whenever there is a price hike, to this ambitious Project. The planning is supposed to connect the UAE with Saudi Arabia, Kuwait, Bahrain and Oman.

    Panning an area of a staggering 2177 km, this Project is estimated to cost up to 250 billion US Dollars. As is, the majority of this Project is planned for UAE and Saudi Arabia. The plan was first proposed in 2009, with the completion estimated by 2018. Issues such as economic recession, dropped oil prices, differences in opinion amongst member states, and various other factors have led to the first phase of the Project, which would link UAE, Saudi Arabia, and Oman, now postponed to completion by 2023. The second phase of the Project connecting Saudi Arabia, Kuwait, and Bahrain, is estimated to be completed by 2025. Also, the income of different countries being varied provides a slight hiccup in regards to funding as some states such as Bahrain are not as well equipped for these projects as its major partner giants like Saudi and UAE. Even then, the Gulf countries have taken on massive foreign currency reserves and loaded up on sovereign debt. As is, the majority of this Project is planned for UAE and Saudi Arabia. Despite the various issues financially faced by these countries, they have doubled down on rail infrastructure spending and has made considerable progress over the last two years. 

    Certain countries have found other ways to boost their incomes, like the introduction of VAT in both UAE and Saudi, and Public-Private Funding as a preferred mode of the funding model. PPPs have helped countries in mitigating various types of risks that are involved with such projects. Apart from the Gulf Rail, countries that are part of this expansive rail project also have their individual trains operating or in the process to begin operation within the Country. These could then be linked to the Gulf Rail, providing a complete network of train system within and outside the Country.

    UAE

    The UAE has various rail projects in different cities. Etihad Railways is one such ambitious rail project which has already completed 1200 km distance of its desired Project. The Ministry of Finance has signed a deal with Abu Dhabi Department of Finance to fund the second stage of the Etihad Rail Project. The second stage will pan a distance of 605kms which will be from Ghuweifat on the border with Saudi Arabia to Fujairah on the UAE's east coast and hence will also integrate into the GCC Railway network.

    The Dubai Municipality had caught on earlier about the need and importance for a rail system based on studies starting from 1997. It had been reported that Dubai's motorists spent an average of 29 hours annually in traffic, which is a higher time period than those who are stuck in traffic in New York, Bangkok, London, etc. In 2009, merely just over a decade later, Dubai had started operations of the metro to the general public. Operated and controlled by the Roads and Transport Authority of Dubai, this was the first urban metro project to be operational in the Arab States. With Red and Green lines connecting various parts of Dubai, and a tram project within Jumeirah Lake Towers, one can get pretty much anywhere around the city through public transport. Further expansion has been planned, comprising a 15 kms expansion covering various parts of the city that is heavily populated, termed as the Route 2020. The stations will connect certain prime spots and locations such as the Discovery Gardens, Al Furjan, Jumeirah Golf Estates, and the Dubai Investment Park. This is exclusive of other lines that are in works connecting parts of Old Dubai. Not only are these projects going to improve connectivity, but it shall also provide for higher property prices in these areas, as they would be more easily accessible to the general public.

    Saudi Arabia

    Saudi has launched its own initiative in connecting the country with various massive railway projects known as the Saudi Landbridge Project. A project investment worth an estimate of 7 billion US Dollars with the tracks panning a distance of 950 kilometers, this would be one of the longest train lines equipped throughout the Arab states. Saudi has various lines under construction for its projects. Another project that is simultaneously underworks is between Riyadh and Jeddah, spanning a distance of 115 kilometers. This will primarily be a freight line which shall be interlinked with North-South railways. The Harmain High-Speed railway line connects Makkah with Madinah, passing through stations in King Abdullah Economic City, and King Abdulaziz International Airport in Jeddah. There will be three freight and two passenger stations (at the airport and in the city centre) in Jeddah. The Dammam-Jubail line will cut short the time for passenger travel by two hours. The freight service from Jeddah to Dammam will cut short the time period for transportation by days on end, as now the link by sea takes roughly around over a week with shipments.

    Bahrain

    Bahrain has already started and is continuing development of the King Hamad Causeway Project, which is its transport connection project to the Gulf rail. It is estimated to cost 3.5 Billion US Dollars and three years to complete this Project. In connection with the Saudi Arabia Ministry of Transport, King Fahd Causeway Authority, and Bahrain Ministry of Transport, Bahrain is going to jointly realize this rail project. The Project consists of a 25 km road and rail offshore section adjacent to the existing causeway and a further 25 km rail section only which is predominantly in KSA connecting to the existing Dammam to Al Hofuf line and with a short section inside Bahrain connecting to the proposed King Hamad International Terminal at Ramli area. 

    Inspired by the Dubai metro, Bahrain is also in the works of launching its own metro line, the light rail network, and the tender for its Project is rumored to be put out next year. However, the operation for this Project is only expected to happen by 2027.

    Kuwait

    Kuwait has delayed the road railway project linking to GCC rail this year due to failure on the part of Public Authority of Roads and Transportation to provide for designs for the rail routes. A 24-month delay has been requested by the Authority as an intensive project as such would require a competent consultant to complete the design on the Project. It is estimated to cost Kuwait 7 billion US Dollars to complete its side of the Project.

    Kuwait also has been in talks of launching a local metro rail within its city since 2009. The plans have unfortunately not come to fruition, although tender for the Project has been handed out. This is also expected to connect to the Gulf rail.

    Oman

    Oman has anticipated its need for a local rail line to and from its mineral mines as this would make transportation of the country's main resource easier. But current lack of demand in the product has stalled the Project; Phase 1 of which is from Manji to Duqm. Oman was in the initial phases of planning stages two of its railway network, the 240km line from Haifait to Fahoud, which is divided into two phases: the 114km section from a junction with phase one at Haifait to Ibri, and a 126km link from Ibri to Fahoud. It is yet to be known whether the status of the Project has changed.

    Concerns and Risks

    There are various concerns and risks evolving around the Project. Since GCC is not economically integrated with each other, there is the aspect of concern as to the percentage of completion from each of the States. It would be in vain if one Country was to complete its part in construction while another hasn't, and the railway not being operational due to this. Hindering oil prices and dwindling interest in minerals are pushing few of the member countries to postpone the Project for a later date. Another concern is regarding illegal immigration and visa issues of non-GCC nationals as it would be difficult to monitor the passengers entering the train, with lines going cross border for thousands of miles. Disagreements between states as to where the lines should begin and end, what part of the city to integrate the lines to, would be another issue altogether. Political turmoil and differences, if occurs, would further make a dent in this plan. There is also the concern of those who own or stay on the land that might come in between the stipulated rail line. They would have to be handsomely compensated, provided they agree to give up their land for this purpose. Technical aspects like the procurement of material, its quality for infrastructure, build quality of the rail, boring through underground lands and tunneling through mountains are herculean tasks that would require utmost care to execute, and has to be made sure that it is done properly.

    Advantages

    Apart from being a beacon in energy efficiency and sustainability, rail projects provide various other advantages. They help with easier transportation of goods for businesses operating interstate and would cheapen the cost of shuttling said goods from various states. Businesses have more scopes of operations as now they can efficiently conduct their businesses in the multiple countries available for trade. We are not strangers to the exponentially long lines of trucks parked at the border, awaiting customs approval to cross over, sometimes taking days in the process. Drivers can now be relieved of this painstaking task once the rails are operational. This would also reduce the time it takes for travel to those that stay far away from their workplaces. All these aforementioned advantages help with the GDP growth of a country. It also saves largely on Petrol consumption in these countries, helping provide a sustainable and brighter future.

    Conclusion

    While this Project has been a dream amongst GCC member countries for years on end, like any other projects on this scale, it has faced its hindrances. Overcoming the various economic, political, and financial issues might seem almost impossible at various points, but once that has been overcome and the project is completed, it would be an unprecedented, never-before achieved dream that would contribute majorly to the development in tourism and commerce of all the countries involved. We can already see a glimpse of that enthralling success as most of the member states are already underway in nearing the realization of this dream.

     

     

    ]]>
    Mon, 02 Nov 2020 18:36:00 GMT
    <![CDATA[Initial Public Offering- Bahrain]]> Initial Public Offering- Bahrain

    Securities and Assets

    Securities is a financial instrument that is negotiable and holds some type of monetary value. It is equivalent to an ownership position in a corporation through stock. Securities can be categorized into three types:

    • Equities
    • Debts
    • Derivatives

    Securities are defined in Volume 6, Glossary of Terms of CBB handbook as shares or bonds issued by shareholding companies, government debt instruments and other such financial instruments as are mentioned therein.

    Establishment and Regulations

    The Bahrain Bourse (also known as the Bahrain Stock Exchange; BSE) facilitates as a major stock market index that tracks the workings of share holding companies listed with it. The Bahrain Stock exchange also provides a ground for traders to conduct their business on the ground.

    Financial Institutions Law 2006, known commonly as the 2006 Law, established the Central Bank of Bahrain as the regulatory authority of BSE.

    Bahrain Bourse is the market formed and governed by

    • Decree Number 4 of 1987, later repealed and replaced by
    • The Law Number 57 of 2009, and
    • Decree Number 60 of 2010.
    • CBB Law 2006
    • CBB Disclosures Standards Book
    • CBB Resolution Number 17 of 2012
    • CBB Rulebook Volume 6
    • CBB Rulebook Volume 7

    These laws govern a set of Rules and Regulations such as:

    • Internal Regulation
    • Money Laundering Regulations
    • Trading Rules and Procedures
    • Clearing, Settlement, Central Depository and Registry Rules
    • Clearing, Settlement, Central Depository and Procedures
    • Market Rules
    • Bahrain Investment Market Rules
    • Listing Rules

    In 2010, Bahrain Bourse was established as a shareholding company to replace BSE, as per Law Number 57.

    Authority

    Central Bank of Bahrain was established by the Financial Institutions law 2006 as a regulatory authority responsible for overseeing the main market and the secondary market. Volume 6 of the CBB Rulebook entails all required regulations in relation to the capital markets.

    Listing Requirements

    In terms of an IPO, there are various listing requirements a company needs to adhere by before authorization for listing is provided. These are

    • Appointment of Advisors
    • Appointment of Auditors
    • Appointment of PR Agent
    • Appointment of Legal Counsel
    • Appointment of Investment Bank
    • Conduct Financial Due Diligence
    • Review financial assets of the company
    • IPO coverage supervision
    • Legal Due diligence
    • Disclosures of the Board of Directors and Management's shareholding in the company and exposure of crucial personal dealings
    • Board of meetings and any major resolutions to be disclosed

    Prospectus

    The Prospectus is defined in the Glossary in Volume 6 as 'An offering document that sets forth the plan for a proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision. 

    ]]>
    Thu, 15 Oct 2020 17:00:00 GMT
    <![CDATA[Bahrain Employment Law and Rights]]> Bahrain Employment Law and Employee Rights

    Law Number 36 of 2012, the promulgation of the labor law in the private sector (the "Law") repealed and replaced the more archaic Labor Law for the Private Sector, Law Number 23 of 1976. The New Law is a milestone for the private sector as it revitalizes the private sector labor market, whilst further enhancing the rights of employees and simultaneously protecting employers' rights.

    The Law imposes onerous provisions on employers and has brought significant changes to the provisions relating to employees' leave entitlements, their end-of-service leaving indemnity, the rights of female employees and penalties. The Law is thus arguably more aligned with international standards and better equipped for modern-day society.

    The Law offers protection to all types of employees regardless of whether they are part-time, full-time, local or expatriate employees. An employee, under the Law, is defined as every natural person employed in consideration of a wage by an employer and under his management or supervision.

    The contracts of employment shall be in writing, in Arabic and where a contract is drawn up in a foreign language, it shall be accompanied by an Arabic translated version as per Article 19 of the Law. In case of absence of a written labor contract, the worker may solely prove all of his rights through all means of proof.

    The Law sets down minimum threshold in some cases such as 30 days of annual leave and 55 days of sick leave allowance (15 days with full pay, 20 days with half-pay and 20 days without pay). However, the Law sets down a maximum threshold in some other cases such as eight working hours. The employers are free to amend within the commanding principals of the Law.

    The employment claims are filed in the Labor Case Administration Office. However, the employer and employee may mutually agree to refer the dispute to the individual Labor Dispute Settlement Authority at the Ministry before taking the dispute to the Courts.

    Protection against Discrimination

    As per Article 39 of the Law, discrimination in wages based on sex, origin, language, religion or ideology shall be prohibited. As per Article 29 of the Law, female workers shall be subject to all of the provisions governing the employment of male workers without any discrimination in similar situations. The defenses to a discrimination claim are subject to the Law of Evidence where the employer may offer testimonies and other documents to substantiate the contrary.

    Article 192 of the Law states that any employee who, during his work, sexually harasses any of his colleagues, by reference, by word, by deed or by any other means, shall be punished by imprisonment for a maximum period of a year or by a maximum fine of 100 Dinars. If this is committed by the employer or his representative, the punishment would be imprisonment for a minimum period of six months or a fine ranging from 500 Dinars to 1,000 Dinars.

    Dismissal

    The Law distinguishes between dismissal without a justifiable cause and unfair dismissal. Where the employee is dismissed on discriminatory grounds, it is considered as unfair dismissal. The compensation differs for each type of dismissal based on the employee's term of the contract. If the contract is for an indefinite term, the employee shall be entitled to compensation of two days' wages for each month of service, provided not less than one month's wages up to a maximum of 12 months' wages when the employee is dismissed without a justifiable cause. If the contract is for a fixed term, the employee on being unfairly dismissed shall be entitled to compensation of wages for the remaining period of the contract unless the parties have mutually agreed at a lesser compensation, provided that the agreed compensation is not below the three months' wages or the remaining period of the contract, whichever is lesser. The employee in all cases is also entitled to additional compensation equivalent to half of the laid down compensations due unless the contract provides for higher compensation.

    In case of mass dismissal, the employer and the employees shall aim to initially settle the dispute amicably. If no agreement is reached within a period of 60 days, either employer or employees may request the Ministry for referring the dispute to the Collective Dispute Settlement Board (CDSB) and where the CDSB does not resolve within 60 days, the employer or employees may request the Ministry to refer the dispute to the arbitral tribunal. The arbitral tribunal shall issue an enforceable binding award.

    Article 68 of the Law regulates the work by stating that the employer shall maintain a special file for each employee including in particular, the employee's name, age, residential address, marital status, residential address, nationality, job or occupation and qualification and experiences, date of employment, current wage, and all modifications to this wage, the leaves, the date of termination of service and the reasons thereof. The employer shall keep the minutes of investigations conducted with the employee, and his supervisors' reports on the level of his performance of the work as per the work regulations. The employer shall keep the worker's file for at least for two years from the date of termination of the work contract. The data is considered as personal data and is not transferred freely to other countries except upon obtaining employee's consent.

    Employee Rights

    Article 41 of the Law stipulates that the employer shall not transfer an employee employed on a monthly basis to an employee employed on a daily, weekly, piece-work or hourly basis, without the employee's written consent in accordance with the provisions of the Law. Article 42 of the Law states that the employer shall not force the employee to purchase foodstuffs, goods or services produced or offered by the employer or from specific establishments owned by him or by a third party.

    Article 50 of the Law specifies that the night shift workers and those under the occupational confinement system shall receive compensation for the nature of their job. The worker may not be employed for more than eight hours per day unless otherwise agreed upon, provided the working hours do not exceed ten hours per day. However, no worker shall be present at the workplace exceeding eleven hours a day calculated from the time of entering until the departure therefrom. The employer can employ the worker for additional hours provided the worker receives a wage for each additional working hour equivalent to his due wage plus at least 25 percent for hours worked during the day, and a minimum of 50 percent for hours worked during the night.

    Leaves

    The employee having spent in the service of the employer at least one year is entitled to a paid annual leave of a minimum of thirty days, with an average of two and a half-day for each month. Where the period spent in the service of the employer is less than one year, the worker shall be entitled to a leave corresponding to the period of his work. Article 61 of the Law gives the employee the right to determine the date of his annual leave in case he is applying for an exam in any of the educational stages provided the employer is notified not less than thirty days prior to the date of the intended annual leave. Article 62 of the Law, however, grants the employer the right to deprive the employee of his wage during his annual leave if it is evidenced that the employee was employed by another employer during the said leave, without prejudice to the disciplinary liability in this respect.

    Article 63 of the Law entitles the worker to a three day leave on full pay in the event of:

  • his marriage for one time;
  • the death of his/her spouse or any of his/her relatives to the fourth degree of kin;
  • death of his/her spouse's relatives to the second degree of kin.
  • The female employees are entitled to maternity leave on full pay for 60 days, including the period before and after the confinement, provided they produce a medical certificate attested by a government health center or a clinic approved by the employer stating the expected date of her confinement. A female employee is entitled to obtain leave without pay for providing care to her child who has not attained more than six years of age for a maximum of six months, three times throughout the period of her service. The female employee, after her maternity leave and until her child is six months of age, is entitled to two periods to suckle her newly born child, each of which shall not be less than one hour. She is also entitled to two periods of care for 30 minutes each until her child completes one year of age. The female employee may combine these two periods, and such two additional periods shall be considered as part of the working hours without any reduction in her wage.

    Article 67 of the Law entitles the Muslim worker, who spent five consecutive years in the service of his employer, to a fourteen-day leave with full pay to perform his Hajj (Pilgrimage) obligation. This leave should be granted once to the worker during the period of service unless he availed it during his service with another employer. The employer determines the number of employees to be granted such leave in each year depending on the working requirements, priority given to the employee who has achieved the longest period of continuous employment.

    Termination of Employment

    As per Article 110 of the Law, when the employer is forced to dismiss a few employees due to downscaling of business or reorganization or even if due to partial disclosure, the local Bahraini employees must be retained if it would be possible to terminate the foreign employee possessing the same competence and experience as the local employee.

    Under Article 99 of the Law, either party to the contract may terminate the contract following the notification to the other party at least thirty days before the date of the termination. Hence, under the Law, the employer is obliged to serve a termination notice should it wish to dismiss an employee. However, the employers shall be bound to follow a longer notice period if it is mentioned so in the contract. When the employer fails to serve the notice in a timely manner, the employee would be entitled to the wages for the notice period.

    Employee's Entitlements upon Termination

    Apart from the Notice Period Wages, there are other entitlements the employee can avail upon termination.

  • Balance of Leave (Article 59 of the Law)
  • The employee shall be entitled to 30 days of annual leave, and the employee shall receive wage corresponding to the accrued leave days.

  • Travel Tickets (Article 27 of the Labor Market Regulatory Law)
  • The expatriates shall be entitled to a return travel ticket to their home country if they do not commence working with another employer within Bahrain.

  • End of Service (Article 116 of the Law)
  • The employee, not benefitting from the provisions of the Social Insurance Law shall be entitled to a reward equivalent to the wage of half a month for each year of service for the first three years and the wage of one month for each subsequent year upon the termination of his contract. The employee is entitled to receive his leaving indemnity for a fraction of a year proportionate to the period of service he spent with the employer. The calculation is based on the employee's most recent wage, excluding all allowances except social allowance. A Bahraini employee receiving a salary exceeding 4,000 Dinars is entitled to the leave indemnity concerning the amount in excess of the 4,000 Dinars only (Article 17 of the Social Insurance Law).

  • End of Service Certificate (Article 13 of the Law)
  • The employer is obligated to give his employee an end of service certificate, free of charge, confirming the date of employment, the type of work performed, the wage and other benefits he obtained, his experience, occupational competency, and the date and reason for termination of the labor contract.

  • Non-Competition Restriction
  • The non-competition restriction is valid only if the employee shall have attained 18 years of age at the time of concluding the contract. The restriction shall be limited as to a time period which must not exceed one year after the termination of the employment contract and shall be limited in terms of place and type of work as necessary to protect the legitimate interests of the employer. The employer may not rely on such restriction if the employee has had a justifiable reason to terminate the employment contract.

    Conclusion

    The Law strongly favors the interests of the employee over that of the employer. Nonetheless, the Law also provides a clear mechanism for calculating compensation upon termination, encouraging out of court settlements and thus reducing litigation costs for employers. Overall, the Law ultimately introduces more efficient and effective employment regulations that are in line with current international standards and best practices. There are considerably fewer disputes processed through the courts, thus reducing the number of frivolous cases filed by disgruntled employees.

     

    ]]>
    Tue, 06 Oct 2020 10:13:00 GMT
    <![CDATA[Copyright Registration in the Middle East ]]> Copyright Registration in the Middle East 

    Admittedly, the Middle East has something of a "Wild West" reputation, when it comes to some business behaviors. One of the most protuberant of these is the Middle Eastern perception of copying someone as a form of flattery, rather than as theft. In this era, where platforms like Instagram and Pinterest reign supreme, the idea of free design has been distorted. While people are happy to pay for construction, because that is tangible, the design is thought to be 'just a piece of paper'. However, the impression that the Law here does not protect designers is, to an acute degree, unfounded. In the UAE, the Ministry of Economy is the highly competent authority that registers and protects intellectual property. 

    However, it is important to note that the number of copyrights registered annually in the GCC countries is a relatively small figure, and furthermore, that copyright litigation here is rare. When it does occur, it ends up being a time-consuming, and cost-ineffective ordeal for copyright holders. While a unified system pertaining to copyrights in the GCC countries does not exist, copyright registration is recommended in order to maximize protection; this ensures that infringers shall be subject to limited damages, fines and possible imprisonment. 

    This article shall explore copyright registration in the GCC countries- a domain that should be taken into consideration in order to evade the possibility of continued infringement. 

    Copyright Registration in the United Arab Emirates 

    Upon the creation of the object to be copyrighted, copyrights can be registered in the United Arab Emirates in accordance with the UAE Federal Law Number 7 of the Year 2002 Concerning Copyrights and Neighboring Rights.

    For it to be eligible to be copyrighted, the object should have been the direct result of intellectual work, as opposed to plagiarism, and should be expressed in any objective form. The copyright can be registered in the UAE upon the filling out of a simple form, and the deposition of one sample of the work to the office of one of the following organizations:

  • The Copyright Department of the UAE Ministry of Economy (Copyright Department) – response may be expected within 1 - 3 months;
  • The Dubai Copyright Office (the local hand of International Online Copyright Office INTEROCO, European Union) - response may be expected within ten days;
  • The U.S. Copyright Office (they may be reached via post).
  •    

    Is the registration of a company or product logo/ insignia/ brand mandatory in the United Arab Emirates? 

    It must be noted that the registration of a copyrighted object is a voluntary right of author/ registrant in the UAE. However, in case these very trademarks or copyrighted objects are being employed in the market in order to promulgate goods/services to customers, the registration of their copyrights is mandatory, in order to avoid penalties that may be levied on account of deception of UAE consumers (as per the UAE Executive Regulation of the Consumer Protection Law). 

    How does UAE Law define copyright?

    As per the United Arab Emirates Federal Law Concerning Copyrights and Neighboring Rights, copyrighted work refers to any created compilation, that may lie in the scope of letters, arts, sciences, in whatsoever mode of expression, and intended for whatsoever purpose. 

    To faintly capture the jurisdiction of this term, the term 'copyrighted work' could be used to refer to registered logos, books, pamphlets, essays and other written works, computer programs and applications, databases, lectures, addresses, sermons, dramatic, dramatic-musical works and shows, verbal or non- verbal music compositions, sound and audiovisual works, architectural works, engineering plans and layouts, works of drawing, painting, sculpture and lithography, and engravings or similar works in the scope of fine arts, photographic works and works analogous to photography, works of applied and plastic art, illustrations, geographical maps, sketches, three-dimensional works relative to geography, topography and architectural designs. 

    Characteristics of the awarded Copyright Certificate 

    As previously established, the copyright registration process is about six months long if the approached authority is the U.S. Copyright Office, and about ten days if the request is issued to the INTEROCO European Copyright Office. The issued copyright certificate shall stay valid over the rest of the course of the author's life, and fifty years after his death. The jurisdictions that the certificate covers shall be the 167 countries that are party to the Bern Convention, of which the UAE has been a signatory since 2004. The authorship of the copyright may be privately held. Either a private individual or a legal entity may be the right-holder; interestingly, partial ownership by physical persons and companies is allowed. The price of copyright registration in the country is USD 4000, with the registering organizations of the INTEROCO or the U.S. Copyright Office. We shall delve further into the intricacies of these vis-à-vis the questions posed below.  

    How long does the copyright protection last? 

    The registered copyright object is protected in the UAE, all through the lifetime of the author, and an additional fifty years beginning from the first day of the calendar year following the death. Correspondingly, the economic rights of the authors of collective works (except those of the authors of applied arts) shall be protected for a period of fifty years beginning from the first day of the next calendar year, in case the author is a legal person.  

    Who is eligible to be an author to copyright in the UAE? 

    The author of copyright could be any physical person, or a group of private individuals, whose information is elucidated upon in the application form. These UAE authors' rights are recognized and protected in all countries that are signatories to the Berne Convention for the Protection of Literary and Artistic Works. As per UAE Copyright Law, the author is the individual responsible for the creation of the work, or the individual who has his name mentioned on the work; if the work has been attributed to him at the time of publication, this author is eligible. 

    Which are the documents that need to be prepared for lawful copyright registration in the UAE? 

    The documents that require to be presented include: 

  • the application
  • a sample of the work to be copyrighted
  • the photo I.D. or passport of the person who is to assume authorship
  • essential information about the right-holder (owner) 
  • a confirmation receipt of the official registration fee payment
  • the contact details of the applicant
  • Is the UAE a signatory to the Berne Convention governing international copyrighting? 

    The United Arab Emirates is indeed party to the Berne Convention for the Protection of Literary and Artistic Works, as of 14 July 2004. The Berne Convention is an international agreement governing copyrights; it was first ratified in Berne, Switzerland, in 1886. It was precisely this Convention that formally set in stone several aspects of modern copyright law; it introduced the novel concept that a copyright exists the very moment that a work is "fixed". It also puts forth, and actively enforced a requirement that countries recognize copyrights held by the citizens of all other countries that are signatories to the Convention. The World Intellectual Property Organization administrates the Berne Convention. 

    Copyright Registration in the Kingdom of Saudi Arabia 

    While there certainly are a large number of myths afloat in the ether about copyright protection in Saudi Arabia, some of which ring to the tune of- "it is not possible for non-Saudi nationals, and foreign companies to benefit from copyright protection", this is simply not the case.

    Like the UAE, the Kingdom is also party to the Berne Convention, which sets out the quintessential intellectual property principles including "national treatment" and the "automatic" protection of copyright works.

    Is Copyright protection available in Saudi Arabia?

    Saudi Arabia certainly has copyright legislation in place in order to secure the protection of copyrighted objects. The Law, Royal Decree Number M/41, dated 30 August 2003, and its corresponding implementing regulations are possessive of detailed provisions on the subject matters of protection, infringement, exceptions, ownerships clauses, and procedure to enforce rights. 

    Which objects are eligible for copyright protection in Saudi Arabia? 

    Literary, artistic and scientific works are protected in Saudi Arabia. Literary work is a term that could be employed to refer to books, articles, magazines, software, and artistic work (which may include paintings, photography, sculpture, lithography and maps etc.) 

    What is the process for registration of Copyright in Saudi Arabia?

    As of now, there is no concrete procedure in place for copyright registration. Nonetheless, as previously established, since Saudi Arabia is privy to the Berne Convention, any work which falls in the purview of protectable subject matter, and fulfils the condition of originality and authenticity, shall be protected without registration. Provisions pertaining to copyrights in TRIPS agreements are also applicable in Saudi Arabia, given that it is a member of WTO.

    Which ministerial authority in the country is responsible for Copyright protection?

    In Saudi Arabia, the Ministry of Culture and Information is responsible for the protection and enforcement of copyrights in Saudi Arabia. The Copyright Protection Division is a highly germane department that has significant oversight within the ministry. 

    How long does copyright protection stay in effect? 

    In the Kingdom of Saudi Arabia, it greatly depends upon the type of work involved. 

  • The protection of work for a singular author extends to span his/her lifetime, and for 50 years after the death of the author.
  • With regard to joint work, the protection shall extend over the span of the lifetime of the authors, and for 50 years after the death of the last surviving author.
  • With regard to corporate entities, the protection of fifty years shall start from the date of the first publication of work onwards. 
  • Photographs are all protected for a definitive period of 25 years.
  • The SAIP Launch of the Optional Copyright Registration System – A Paradigm Shift

    Notably, in December 2019, the Saudi Authority for Intellectual Property announced the launch of the optional registration service with regard to the copyright system; this allows the authority to register credited work and documentation, and serves as an electronic database for them. The works that currently are able to enjoy the optional registration service include computer software and apps, in addition to architectural designs.

    With the single-minded goal of the establishment of a safe atmosphere to harbor innovators, the approval for the optional registration list of copyrighted works was adopted upon the issuance of the approval of the Board of Directors of the Saudi Authority for Intellectual Property, pursuant to the missions and prerogatives assigned to it, as per the Council of Ministers Resolution Number 496, dated 9/14/1439 A.H. In its third article, it stipulates that the authority shall bear the onus for the organization of the domains of intellectual property in the Kingdom, and their development, nurturance, protection, and elevation. 

    Copyright Registration in Bahrain

    Like the UAE and the KSA, Bahrain is also a member of the Berne Convention, according to Law Number 30 of 1996, in addition to the WIPO Copyright Treaty as per Law Number 14 of 2004. Bahrain's membership in both of these treaties was effectively translated into the local legislative system, with the goal of throwing a net of copyright protection, with respect to both moral and financial rights.

     

    The Copyright Law of 2006 sets the Bahrain intellectual property scene apart by establishing the protection period to be the authors' life plus 70 years, as opposed to the common 50 years, and by adding specific provisions with regard to customs and preliminary procedures. 

    What are the Bahraini copyright registration formalities, if any? 

    Like the majority of the countries in the GCC, and as delineated by the Berne Convention, copyright protection can be availed of automatically, without the need for registration or other formalities. However, should the copyrighted work be deposited before the Ministry of Information, evidence of ownership shall become governmentally touted; this would greatly assist the resolution of ownership disputes, document assignments, and any other financial transactions.

    The legislative component of the Copyright Protection machine in Bahrain is admirably robust, with the laws and regulations in the Kingdom being fine-tuned to perfection. However, the wedge in the cogs is posed by the minuscule number of judicial and administrative precedents, especially with regard to I.P. enforcement– most of the provisions have been left untested. 

    Copyright Registration in Kuwait 

    By virtue of the Berne Convention, of which Kuwait also happens to be a signatory, copyrighted work stands to be protected, without mandating the formality of registration or deposition with the National Library. However, in order to wield the power of a prima facie ownership claim, it is recommended to adopt a formal registration procedure that guarantees protection.

    What are the legal requirements to obtain a copyright in Kuwait? 

    In order to obtain copyright protection, the work at hand is required to be; distinct, novel, and genuinely produced. It goes without saying that the work must have been manifested in a creative fashion, that is completely bereft of imitation, or plagiarism, so to speak.  

    The procedures to obtain a copyright are elucidated upon in the following steps:

  • The relevant application from the National Library is to be filled out. 
  • Two copies of the work-to-be-copyrighted are to be provided.
  • All pertinent information is to be compiled in the CD format.
  • A Power of Attorney is required to be issued the workup to the Kuwaiti consulate. 
  • If the agent is foreign, a local agent is required to be present. 
  • Can copyrights be registered? 

    In Kuwait, copyrights can certainly be registered with the National Library, in order to protect the copyrighted work from misuse. 

    What are the formalities for copyright registration in Kuwait? 

    Under the new Kuwaiti Copyright Law of 2017, the administration of registration has been assigned to The National Library. The applicant is expected to file an application addressed to the National Library, bundled with a copy of his work. In the Law, the Library has prescribed asset of varied procedures for different types of objects and an official fee. Within two to three months, the Library shall issue a depository number to the applicants, once the formal filing has been made.

    What is the tenure of active, registered copyright? 

    Like many other GCC countries, the period of protection of the copyright is the life of the author, in addition to another fifty years starting from the year of death of the author. 

    The period of protection for compilations published by individuals sheltering under a pseudonym, or cinematic compilations, photography works, applied arts, software or posthumously published compilations is 50 years. 

    With regard to works owned by broadcasting entities, the period of protection extends to twenty years from the end of the year in which it was the first broadcast.

    Copyright Registration in Oman

    By now, a pattern is discernible- on account of it being a signatory to the Berne Convention like the other GCC countries, copyrighted works do not need to be registered in order to acquire protection in Oman. 

    However, the government provides nationals with a voluntary right– they are provided with a mechanism for copyright registration if they wish to engage in the same. While this certainly does not grant those, who register with any special rights, it can certainly be said to be a potential tool to serve as additional evidence, in the event of ownership being contested. Once or twice a year, the Ministry of Commerce and Industry issued the details of the works that have been deposited for copyright registration in the Official Gazette. 

    Conclusion

    It can be universally conceded that strong profits and lax enforcement are possessive of sway, that might encourage traders to illegally market, and distribute infringed products. Regrettably, famous copyrights are routinely used, and capitalized upon for profit, without permission throughout the Middle East; this leads one to believe that a set of unified I.P. laws in the GCC is of the essence. This has the potential to eliminate a variety of infringements in the member states and clear the path for heavy-handed I.P. enforcement. Companies and industries that are registrants under this proposed system would also indubitably benefit from the unified front it proffers– it would make their I.P. impregnability more absolute. 

    ]]>
    Tue, 01 Sep 2020 09:39:00 GMT
    <![CDATA[Securities Finance in Bahrain]]> Securities Finance in Bahrain

    What are Securities and Assets?

    Securities is a financial instrument that is negotiable and holds some type of monetary value. It is equivalent to an ownership position in a corporation through the stock. Securities can be categorized into three types:

  • Equities
  • Debts
  • Derivatives
  • Equities
  • Equity security is one where you hold shares of capital stock, enabling you to be a shareholder in the company. These shares pay out dividends, and such shareholders are usually not entitled to regular payments. The dividends are dependent on how the company is performing, and in the case of bankruptcy, you are entitled to residual interest after all the obligations have been fulfilled to its creditors. On the bright side, some control in the company via voting rights is available.

    Various types of Equities Shares can be defined as Debentures, Bonds, Deposits, Notes, or Commercial Paper.

  • Debts
  • A debt security is one where the money is borrowed by the company and must be repaid-with interest as per various factors. These include government and corporate bonds, certificates of deposit, and collateral securities. They are issued for a fixed period, which can be redeemed in the end by the Issuer. These securities can be secured or unsecured, dependent on the type.

    There are various types of Debt shares, such as Corporate Bonds, Money Market Instruments, Euro Debt Securities, Government Bonds, etc.

  • Derivatives
  • As per financial terminology, Derivatives refer to those contracts that are dependent upon the performance of an underlying entity. This entity could be of any kind, such as assets, index, interest rate, or futures, referred to commonly as underlying. While there are various types of derivatives, insuring against price differences of various entities is what it is primarily used for. Two parties specify certain preset conditions upon the dates, estimated prices, underlying variables, etc. and form an agreement, paying the other party a certain amount in case of the events not being in favor of the party in a loss.

    The various types of derivatives can be classified as forwards, futures, options, swaps, collateral debt obligations and contract for differences (CFDs).

    What Law defines Securities as per Bahrain's Regulations?

    In the context of this article, Volume 6 of CBB Regulations define Securities as shares or bonds issued by shareholding companies, government debt instruments, and the following financial instruments:

  • Shares in companies and other securities equivalent to shares in companies or other entities, and depositary receipts in respect of shares;
  • Bonds or other forms of debt, including depositary receipts in respect of such securities;
  • Warrants;
  • Units, rights or interests (however described) of the participants in a collective investment scheme;
  • Options, futures and any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties (otherwise than by reason of a default or other termination event);
  • Options, futures and any other derivative contract relating to commodities that can be physically settled;
  • Units to Real Estate Investment Trusts (REITs);
  • Index tracking products including Islamic indices;
  • Any other financial instrument approved as a financial instrument by the CBB for the purpose of trading such an instrument on an exchange; and
  • Islamic securities, being those financial instruments that are Shari'a compliant.
  • What are the Statutes and Regulations relevant to governing securities offerings in Bahrain?

    The Bahrain Stock Exchange (BSE) (also known as the Bahrain Brouse), facilitates as a major stock market index that tracks the workings of shareholding companies listed with it. The Bahrain Stock Exchange also provides a ground for traders to conduct their business on the ground.

    Financial Institutions Law 2006, known commonly as the 2006 Law, established the Central Bank of Bahrain as the regulatory authority of BSE.

    Bahrain Bourse is the market formed and governed by various enactments such as:

  • Decree Number 4 of 1987, later repealed and replaced by the Law Number 57 of 2009, and Decree Number 60 of 2010
  • CBB Law 2006
  • CBB Disclosures Standards Book
  • CBB Resolution Number 17 of 2012
  • CBB Rulebook Volume 6
  • CBB Rulebook Volume 7
  • These laws govern a set of Rules and Regulations, such as:

  • Internal Regulation
  • Money Laundering Regulations
  • Trading Rules and Procedures
  • Clearing, Settlement, Central Depository and Registry Rules
  • Clearing, Settlement, Central Depository and Procedures
  • Market Rules
  • Bahrain Investment Market Rules
  • Listing Rules
  • In 2010, Bahrain Bourse was established as a shareholding company to replace BSE, as per Law Number 57.

    Who is the regulatory authority/authorities tasked with the responsibility for the administration of these rules?

    Central Bank of Bahrain is the sole regulatory authority in terms of supervising the market. The CBB was established by the Financial Institutions Law 2006 as a regulatory authority responsible for overseeing the main market and the secondary market. Volume 6 of the CBB Rulebook entails all the required regulations in relation to the capital markets.

    Are the markets compliant as per International Standards? If so, what are they?

    The Central Bank of Bahrain is compliant with various relevant international standards such as International Organization of Securities Commissions (IOSCO), IOSCO's Multilateral Memorandum of Understanding (MMOU), and was reviewed for compliance by International Monetary Fund (IMF).

    What dictates possession with regards to Contract for Difference?

    CFDs do not institute possession of the stock that is bought but rather imitates the profit and loss for real purchase or sale of an asset. This contract gives a chance to trade in the underlying market and make profits without owning the said asset. As per CBB Regulations not explicitly mentioning so, CFDs come under the category of Derivatives as per aforementioned glossary of terms of Volume 6. Hence, possession of CFDs could be possible as a derivative.

    What are the classifications set as per Bahrain Laws that define Trading in Securities?

    Article 80 of Securities under the 2006 Laws lays down what would define an entity as a Company/Financial Firm that's trading in Securities. These activities, without limited to a single one, are:

  • Promoting and underwriting securities or financing investments therein.
  • Participating in incorporating of securities companies or increasing the capitals thereof.
  • Forming and managing securities portfolios and investment funds.
  • Depositing, clearance and settlement of securities.
  • Brokering in securities transactions.
  • Providing advisory services related to securities.
  • Any other activities as approved by the Central Bank.
  •  

    As aforementioned, CFDs are not explicitly provided for as per the terms, but any CFD that is effectively linked to security in the form of bonds, shares, indices, futures, etc. will fall within the scope and ambit of securities as defined above. All CFDs would be considered as contracts within the meaning of various definitions under Securities such as, 'other securities equivalent to shares in companies or other entities', 'any other derivative contracts relating to commodities that must be settled in cash or may be settled in cash at the option of one of the parties', or 'other derivative contract relating to commodities that can be physically settled'.

    Hence, fulfilling either or all of the said criteria would put CFDs under the ambit of a contract and hence a financial firm trading in these categories would be recognized as a Company as per Commercial Companies Law in Bahrain.

    What are the Licensing and Corporate Governance Compliance to be adhered by financial firms in terms of Initial Public Offering of Securities?

    Article 40 of the CBB Law provides that no person may carry out regulated services without being authorized by the CBB while Article 81 states that no person may issue any securities in Bahrain unless the Central Bank of Bahrain's written approval is granted. In respect to the Articles, it is mandatory for a financial firm to adhere to the conditions specified in OFS 1.5.2 of Volume 6 which states the General Requirements and Rules and Regulations to be complied for issuing of Securities to all Issuers, including an overseas issuer. OFS 2.2 defines Initial Public Offering as an offer for a subscription to the public on behalf of or by a newly-established company, or an unlisted issuer of its own securities. For a Public Offer to be approved as per CBB, the Issuer must meet certain criteria.

    The Criteria is mentioned under OFS 2.3.3 of Volume 6:

  • The Issuer is a duly incorporated entity as per the laws of Bahrain, or in case of an overseas Issuer, as per the laws of its place of incorporation;
  • The Issuer operates in conformity with its Articles and Memorandum of Association or the equivalent constitutional documents;
  • The securities are transferable freely and free from any encumbrances;
  • The offered securities are to be listed on a licensed Exchange in Bahrain, along with having adequate assurances between the Issuer and the licensed Exchange that they will be admitted to such a platform;
  • The mandatory custodial and/or central depository arrangements have been made including the deposit of securities with an entity eligible to provide depository services under Article 94 of the CBB Law;
  • The mandatory clearing and settlement arrangements have been made giving effect to Article 108 of the CBB Law;
  • The eligible advisors have been appointed by the Issuer, including appointing a listing agent who shall liaise with the licensed Exchange and the CBB where the CBB deems vital;
  • A lead manager must be appointed by the Issuer for any public offer;
  • The Issuer has to make sure that the issue is underwritten unless provided an exemption by the CBB;
  • While the issue is being underwritten, full details of the underwriter and the underwriting agreement must be disclosed in the prospectus.
  • These aforementioned submissions are to be made for the license of Initial Public Offering of Securities in the Bahrain Market.

    What publicity requirements are to be made by the applicant?

    The applicant is required to publish a draft of the summary prospectus in two daily local newspapers, where one is in Arabic and the other is in English, at least 5 days prior to the start of the offering period.

    What information needs to be included in the filing of various documents required for PO?

    Prospectus

    The prospectus is defined in the Glossary in Volume 6 as 'An offering document that sets forth the plan for a proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision. A prospectus needs to be offered for every offer of securities. OFS-5.2 to OFS-5.10 states in detail of what is further required in a Prospectus, as mentioned below:

  • Full name and registration number of the Issuer;
  • Type and amount of securities;
  • Date of the offering document;
  • The expiry date of the validity of the prospectus;
  • Logo and the full name of each advisor;
  • Logo and the full name of the lead manager and co-managers;
  • Logo and the name of the underwriter, if any;
  • Face or par value of the securities;
  • Offer price;
  • Premium (if applicable);
  • Placement fee or charge (if applicable);
  • Minimum subscription limit (if applicable);
  • Maximum subscription limit (if applicable);
  • Eligible subscribers (general classification by nationality or region); and
  • Standard disclaimer statement, written in capital letters and box framed, stating
  • "THE CENTRAL BANK OF BAHRAIN AND [NAME OF THE LICENSED EXCHANGE] ASSUME NO RESPONSIBILITY FOR THE ACCURACY AND COMPLETENESS OF THE STATEMENTS AND INFORMATION CONTAINED IN THIS DOCUMENT AND EXPRESSLY DISCLAIM ANY LIABILITY WHATSOEVER FOR ANY LOSS HOWSOEVER ARISING FROM RELIANCE UPON THE WHOLE OR ANY PART OF THE CONTENTS OF THIS DOCUMENT."

    OFS 5.3 states Additional and Specific content for debt securities and 5.4 to 5.10 mentions other additional requirements to be complied with in regards to filing of the prospectus depending on the type of security that is being offered. It is mandated as per CBB that a Prospectus must be drawn up for every offer of Securities in the market.

    A company is also required to submit their MOA or AOA as per regulations of Commercial Companies Law of Bahrain established as per Decree Law Number 21 of 2001.

    What is Underwriting?

    Underwriting service is when a licensee bears the risk of commitment to market or places all or part of the issue of a financial instrument issued by an unconnected party to the investors in return for a fee and within a pre-agreed time frame. It includes a binding commitment by the licensee to purchase the portion of the issue which remains unsubscribed for. Underwriter, as per regulations, must not be a related party; and must be done directly or through an authorized market maker. There should be an established price stabilization mechanism for the securities for a period of minimum six months beginning from the first day of trading on a licensed exchange. A longer period of price stabilization may be required by the CBB, if and where it considers as necessary.

    Are there any regulations to be followed by an Underwriter?

    The underwriter is required to comply with:

  • CBB Law, rules and regulations,
  • Volume 6 of the CBB Rulebook, and
  • Issuer's Memorandum and Articles of Association, particularly concerning the eligibility of the expected subscribers to acquire the Issuer's securities and related disclosure requirements.
  • What are the Application Requirements?

    OFS 4.1.2 provides for the accordance of the application to be submitted to the CBB for approval. It must be submitted under cover of a letter signed by two authorized signatories by the Board of Directors of the Issuer, along with:

  • A copy of the Issuer's Board of Directors' proposal in respect of the issue to its General Assembly;
  • A copy of the General Assembly resolution through which the issuing and offering of securities is approved;
  • A copy of the duly signed Board of Directors' responsibility statement, signed by all directors in the standard statement stipulated by this Module;
  • A copy of the duly signed declaration by the lead manager, based on a due diligence exercise of all relevant conditions, facts and arrangements, as appropriate;
  • A copy of the duly signed declaration by the legal advisor for the offer, based on a due diligence exercise of all relevant legal conditions, facts and arrangements, as appropriate;
  • A final ratified Memorandum and Articles of Association, or relevant constitutional documents for existing issuers, or a draft copy thereof for issuers under formation;
  • A draft of the offering document prepared in line with the CBB requirements as stipulated under this Module;
  • A copy of all arrangements, contracts and/or letters signed with the Issuer and or lead manager with all appointed advisors;
  • Duly completed term sheet on the offering, as stipulated by the CBB from time to time in this Module;
  • The expected offering timetable;
  • A bona fide copy of either the Issuer's external auditor unqualified report on the annual audited financial statements or interim period reviewed financial statements prepared by the Issuer's external auditor;
  • A copy of the audited financial statements, including the balance sheet, income statement, cash flow statement and change in shareholders' fund, for the period required under this Module for each type of offer, and the interim period reviewed financial statements for the period required under this Module;
  • A copy of the duly signed report prepared by an independent accountant on any estimates, projections of the financial statements, or future operating results of the Issuer, if applicable;
  • A copy of at least two independent valuer's reports if the proposed offering of securities is guaranteed, is made up of physical assets or property or backed by any assets, property, or any form of collateral;
  • A copy of all documents available for inspection by the potential subscribers and/or allottees;
  • Information on the legal structure of the company and company registration;
  • A draft of the summary prospectus to be published in two daily local newspapers, one in Arabic and the other in English, at least 5 days before the start of the offering period;
  • If the offer is subject to the listing requirements, the Issuer or lead manager must provide information on the listing arrangements and information on the designated listing agent if different from the lead manager;
  • If, in addition to listing on a licensed exchange, the offer will be listed on an exchange outside Bahrain, a copy of the approval of the relevant regulator within that jurisdiction;
  • If the offer will be made in countries other than Bahrain, a copy of such other country's regulatory approval for such offer;
  • If the securities under the proposed offer are already listed on an exchange, details of the current listing requirements and performance of the securities;
  • If the securities under the proposed offer have been placed through private placement prior to the date of submission of application, full details about such placement;
  • Draft or proof print of any application form to subscribe or purchase the securities;
  • A copy of the draft or any temporary document of title proposed to be issued; and
  • For initial public offerings, initial offer for sale of securities and foreign listings, the Issuer is required to provide the CBB with a draft of agreements or contracts related to the depositing of securities and registration arrangements.
  • The time periods within which these documents need to be submitted are specified below.

    Are there any Language Requirements for filing?

    The prospectus is required to be drafted in layman's language and is not to be made too complicated. Apart from this, as stated above, while having to publish the Offering Document in the newspapers, it has to be done in one Arabic and one English language national daily newspaper. These regulations are specified as per Volume 6 of the CBB Module.

    What are the time periods specified?

    The application has to be submitted with the required information, documentation, and fees at least 30 days prior to the commencement of the offering period. The applicant then has to make representation to the CBB within 30 calendar days of the receipt to clarify any grounds set out in the notification. It is crucial to note that CBB will only start the process of the application once all the required documents are submitted. After receiving the representation, the CBB will provide its final decision in another 30 days.

    Is there any differentiation between Primary and Secondary Offerings?

    No, there are no separate categories mentioned as per Volume 6 of CBB Rulebook on Primary and Secondary Offerings.

    Are there regulations governing Private Placements?

    OFS 2.4 states the regulations and criteria required to be fulfilled for Offers made by Private Placement. A private offer must be made only to accredited investors for a minimum investment of USD 100,000. The private offers are limited to be taken up by not more than 100 accredited investors, excluding offers of private equity.

    What are the restrictions and criteria to qualify for Private Placements as per CBB?

  • It is required for the first offering to be made to existing shareholders and then to the public.
  • Listed issuers are required to obtain CBB Approval to make a Private Placement.
  • Approval from the shareholders during the General Assembly is also necessary.
  • Issuers must combine all offers of securities that are in substance part of a single offering. The CBB will consider if the offer occurs in the six-month period before or the six-month period after the completion of an offer.
  • The Issuer must make sure that the purchasers of securities are not doing so for reselling or redistribution purpose as this would be regarded as a Public Offer.
  • Any private placements marketed or promoted by licensees of the CBB must set fees within the actual cost and must be within reasonable and justifiable levels that do not compromise the interests of the Issuer or the investor.
  • The Issuer, lead manager and any appointed advisor to the private placement offer must not disseminate or make available any information related to the private placement offer to the public prior to the subscription being closed and must not at any time disclose or make available any information that could be regarded as an inducement to deal in these securities.
  • Are there restrictions on transferring of securities in private placing?

    It is to be made sure by the Issuer that the purchases of securities are not made by the holders for the purpose of redistribution to other investors within a period of one year.

    What are the Documents required to be submitted?

  • A confirmation from the Issuer or the lead manager that the offer will not be offered to the public and shall only be offered in line with requirements of Section OFS-2.4;
  • A copy of the subscription form which must include the accredited investor status confirmation;
  • A list of the expected accredited investors, if available at the time of submission; and
  • An offering document for a private placement of securities must meet the requirements of the particular security.
  • Disclosures

    The private placement or any other fee such as offering expenses, upfront discounts, placement commissions, or other placements or selling agents, and any other related cost must be disclosed clearly in the PPM.

    What about Foreign Offers?

    Foreign offers that are marketed within Bahrain is subject to filing requirement as per the Module. Any offering document for Foreign Private Placement also requires to have the following statement to be included to be able to be in circulation in Bahrain.

    "In relation to investors in the Kingdom of Bahrain, securities issued in connection with this prospectus and related offering documents must be in registered form and must only be marketed to existing account holders and accredited investors as defined by the CBB in the Kingdom of Bahrain where such investors make a minimum investment of at least US$ 100,000, or any equivalent amount in other currency or such other amount as the CBB may determine.

    This offer does not constitute an offer of securities in the Kingdom of Bahrain in terms of Article (81) of the Central Bank and Financial Institutions Law 2006 (decree Law No. 64 of 2006). This prospectus and related offering documents have not been and will not be registered as a prospectus with the Central Bank of Bahrain (CBB). Accordingly, no securities may be offered, sold or made the subject of an invitation for subscription or purchase nor will this prospectus or any other related document or material be used in connection with any offer, sale or invitation to subscribe or purchase securities, whether directly or indirectly, to persons in the Kingdom of Bahrain, other than as marketing to accredited investors for an offer outside Bahrain.

    The CBB has not reviewed, approved or registered the prospectus or related offering documents and it has not in any way considered the merits of the securities to be marketed for investment, whether in or outside the Kingdom of Bahrain. Therefore, the CBB assumes no responsibility for the accuracy and completeness of the statements and information contained in this document and expressly disclaims any liability whatsoever for any loss howsoever arising from reliance upon the whole or any part of the content of this document.

    No offer of securities will be made to the public in the Kingdom of Bahrain and this prospectus must be read by the addressee only and must not be issued, passed to, or made available to the public generally."

    Is Cross Border Practice permitted?

    Cross Border practice may be conducted if it is not Collective Investment Undertakings (the CIUs) or Reverse solicitation or activity under the definition of tolerated practices, as per CBB.

    Are there any additional regulations or exemptions for Convertible Securities?

    The Issuer of convertible securities must disclose in the offering document the extent to which the shareholder may subscribe for the convertible securities.

    Securities may be converted into other types of securities, or these can be converted into another class of the same securities. The conversion of securities may also take place within the same securities issuer's company and/or group, or in relation to another company or group.

    In the case of convertible securities which are exchangeable for securities of another company, an Issuer must submit to the CBB the annual report and accounts of that other company unless that company is listed or adequate information is already available. 

    Are there any specific ongoing reporting obligations for the Issuer?

    The Issuer is required to keep the Exchange and holders of its listed Debt Securities informed of any information concerning its business as soon as reasonably practicable, including information on the major new developments in the group's sphere of activity which is not in public knowledge. It is necessary to enable them and the public to appraise the position of the business and is necessary to avoid the establishment of a false market in its listed Debt Securities if it can be reasonably expected to significantly affect its ability to meet its commitments.

    The Issuer also needs to ensure if his Debt Securities are also listed on other exchanges, information released to any of such other exchanges is released to the Bahrain Stock Exchange at the same time as it is released to the other markets.

    This regulation is subject to Article 160 of the Commercial Law, and further ongoing obligations are mentioned in Volume 8 of the Rulebook.

     

    What are the regulations against malpractices?

    Bahrain Regulations provide for a general overview of the prevention of malpractices, like insider trading and more. Appointed advisors are subject to confidentiality requirements which must be explicitly stated in the respective agreements, contracts and/or letters.

    All advisors must abide by the rules relating to the Prohibition of Market Abuse and Manipulation contained in Module MAM of Volume 6, as well as the relevant rules of the licensed Exchange regarding the prevention of insider trading, in their capacity as a temporary insider.

     

    What are the relevant Market practices one needs to keep in mind while abiding by CBB Regulations?

    There are various market practices that CBB will take into account which are given under Prohibition of Market Abuse and Manipulation, MAM 1.2.1 as:

  • The level of transparency of the relevant market practice to the whole market;
  • The disclosure requirement of the relevant market practice by the market participants;
  • The need to safeguard the operation of market forces and the interplay of supply and demand, or safeguard the interest of the securities holders;
  • The degree to which relevant market practices has an impact on market liquidity and efficiency;
  • The degree to which the relevant practice takes into account the trading mechanism of the relevant market and enables market participants to react properly and in a timely manner.
  • Behaviour or conduct does not amount to market abuse if it conforms with a rule which includes a provision to the effect that behavior conduct conforming with the rule, does not amount to market abuse.

    Is Price Stabilization to be declared, and are there exemptions provided?

    Lead Manager's Declaration must contain the price stabilization method, limits and determination of issue price where the issue is not underwritten. There are various practices that are exempted from Prime Stabilization method, which has been provided under the Prohibition of Market Abuse and Manipulation in Volume 6.

     

    ]]>
    Mon, 10 Aug 2020 16:40:00 GMT
    <![CDATA[Competition Law in Bahrain]]> Competition Law in Bahrain

    "The heart of our national economy long has been faith in the value of competition"

    -Standard Oil Co. v. FTC, 340 U.S. 231, 248, 71 S. Ct. 240 (1951)

    Firms conducting anti-competitive behavior may find their agreements to be unenforceable and risk being fined for particularly impaired conduct as well as exposing themselves to possible damages actions. In addition, individuals could also find themselves facing disqualification orders or even criminal sanctions for serious breaches of competition law. Any business, irrespective of its legal status, sector and size, needs to be aware of competition law, in order to meet its obligations to avoid the penalties and also to assert its rights to protect the position in the marketplace.

    Two sets of competition rules apply in parallel in the United Kingdom (UK). Anti-competitive agreements which may affect trade within the UK is specifically prohibited by Competition Act 1998 (Chapters I and II) and the Enterprise Act 2002. Where the effect of anti-competitive behavior extends to the other EU Member States, it is prohibited by Articles 101 and 102 of the Treaty on the Functioning of the European Union (TFEU).

    The Kingdom of Bahrain (Bahrain) issued Law Number 31 of 2018 with respect to the Competition Promotion and Protection (the Law) in order to boost its economic diversification and liberalization further. The Law came into force in 2019 and is expected to have positive repercussions on businesses carrying out their operations in the country. 

    It is vital to note that while Bahrain has never had a standalone competition law, specific key concepts related to competition law are embedded in various laws already in force in the country, such as the Civil Code, Commercial Code and Consumer Protection Law. However, the Law was created based on a wide range of international sources to foster Bahrain's regulatory framework in accordance with developments of international legislation.

    The Law focuses on regulating the following core issues:

  • anti-competitive arrangements;
  • abuse of dominant position; and
  • economic concentration.
  • Pending the issuance of a decree forming the Board of Directors and the financial allocation of the Authority for governing and enforcing the Law (the Authority) in the general budget of Bahrain, the Consumer Protection Directorate at the Ministry of Industry, Commerce and Tourism (MOICT) has been temporarily appointed as the Authority.

    The powers, functions and duties of the Authority are:

  • To monitor compliance with the Law;
  • To receive and investigate complaints concerning the possible violations of the Law; and
  • To investigate any possible violation discovered by the Authority or where requested to do so by the Minister.
  • Scope of Application

    Article 2 lays down the scope of application of the Law. The Law shall apply:

  • To all undertakings that carry out their economic activities in Bahrain;
  • To any arrangement or conduct which is intended to or results in anti-competition in Bahrain, even when the party or parties are not established in Bahrain; and
  • To economic activities conducted extraterritorially, yet affecting competition in Bahrain.
  • Provisions of the Law are not applicable:

  • To arrangements approved by international conventions that are applicable in Bahrain;
  • To facilities and projects owned or controlled by the state of Bahrain; and
  • To arrangements necessary for the use, exploitation, transfer, assignment, or license of Intellectual Property rights; provided that these arrangements do not unreasonably hamper the competition or transfer and dissemination of technology.
  • Anti-competitive arrangements and exemptions (Section Two of the Law)

    The Law imposes a prohibition on arrangements which have the object or effect of hindering competition in Bahrain such as:

  • Influencing the prices of the products through increasing, reducing or fixing the price or by fictitious arrangements or in any other form;
  • By limiting or controlling the production, marketing, technical development or investment;
  • By sharing the markets or sources of supply;
  • By knowingly disseminating false information about products and their prices;
  • By doing collusive practice in bids or proposals with respect to the auctions, tenders or practices, and influencing the proposed selling or purchase price of products;
  • By affecting other competitors through fabricating sudden abundance of products leading to exchanging these products at a false price;
  • By doing a collusive practice of refusal to buy, sell or supply from a particular business (or businesses) with the purpose of preventing or hindering its practice.
  • Any arrangement which is found to be contrary to provisions above shall be null and void in Bahrain. However, an arrangement where all its parties are under the direct, or indirect control of one undertaking, shall not be subject to provisions above, even if the controlling undertaking is a party to the arrangement.

    There are exceptions to the general prohibition against anti-competitive arrangements mentioned in Articles 4, 5 and 7 of the Law. In general terms, arrangements which would normally be prohibited on the grounds of being anti-competitive may be permitted if:

  • the Authority, by virtue of a resolution, decides that the harm caused by the anti-competitive nature of such arrangements are outweighed by certain positive outcomes of the arrangement (Requirements are set out in Article 4 of the Law);
  • the Authority, as per Article 5 of the Law, decides so for the categories of arrangements between small businesses having one of the positive outcomes set out in Article 4 of the Law. The exemption shall be for a specific term that may be renewable for additional terms;
  • by a reasoned decision issued by the Minister, after obtaining the advice of the Authority, and approval of the Council of Ministers, on the grounds of compelling reasons of public policy. The decision may be conditional and for a specific period, subject to renewal (Article 7 of the Law).
  • Abuse of dominant position and exemptions (Section Three of the Law)

    A dominant position exists when any business, solely or jointly with other businesses, can control or influence the market. A business enjoys a dominant position if it has an economic strength to prevent effective competition in the market and to act in a manner significantly independent from its clients and competitors.

    Unless proven otherwise, a business is in a dominant position if its share is in excess of 40 percent in the relevant product market in Bahrain. An association of undertakings, consisting of two or more undertakings, are in a dominant position if their market share is in excess of 60 percent in a relevant product market. However, an undertaking may be deemed to be in a dominant position in the relevant product market, even if its share is lesser than the aforementioned percentage. A Resolution by the Authority shall set additional parameters to determine if an undertaking, individually or together with another undertaking enjoys a dominant position.

    Article 9 specifically prohibits an undertaking from abusing its dominant position. The following, in particular, shall constitute abuse of a dominant position:

  • Directly or indirectly imposing the selling or purchase prices or any other trading conditions;
  • Limiting, to the detriment of consumers, production, markets, or technical development;
  • Applying discriminating conditions concerning prices, product quality, and other terms of business, in any contracts or agreements concluded with consumers or suppliers of equivalent legal positions;
  • Subjecting conclusion of a contract with respect to a certain product, to conditions such as accepting products or obligations which by their nature or commercial use have no link to the subject of the original agreement, contract or transaction; 
  • Refraining, without any legitimate reasoning, from concluding with any business transactions for the purchase or sale of a product, the sale of products at a price lower than the actual cost, or completely suspending transaction to eliminate competing undertakings from the market, or causing damages that will prevent such undertakings from continuing their businesses.
  • Similar to the exemption in case of anti-competitive arrangements, the Minister, as per Article 10 of the Law, has the power to approve an exception to the prohibition of abuse of a dominant position, if it is deemed to be in the public interest.

    Market concentration and exemptions (Section Four of the Law)

    The Law also regulates certain types of market concentration in Bahrain. Market concentration is established, when a shift in market control is attributed to any of the following:

  • Merger, partially or fully, of two or more undertakings which were previously independent;
  • Acquiring indirect or direct control, over another undertaking partially or fully, by:
  • One or more natural person, controlling one or more undertaking;
  • Another undertaking or undertakings;
  • Establishing a joint venture that undertakes all duties of a single independent undertaking.
  • Furthermore, under Article 12 of the Law, certain types of market concentration transactions are prohibited without approval from the Authority, as mentioned by the Minister's decision after obtaining the advice of the Authority. 

    Article 13 of the Law states that the concerned party, or its representative, shall submit to the Authority, a request to obtain approval of market concentration.

    The Law prohibits economic concentrations which would have the effect of significantly limiting competition in the market. Similar to the exemption in case of anti-competitive arrangements, the Minister, as per Article 15 of the Law, has the power to approve a proposed market concentration, on the grounds of compelling reasons of public policy.

    Penalties

    The Law grants powers to the Authority to ensure compliance with the Law and investigate circumstances where its provisions may have been breached. In case of violation of the Law, the Board of Directors may:

  • Impose a fine not exceeding 5 percent of offender's daily sales of products. Such fine shall not exceed Bahraini Dinar (BD) 1,000 per day in the event of a first-time violation, and BD 2,000 per day in the event of recurrence of the same violation within three years from the date of the issuance of the first decision; and
  • Impose, by virtue of reasoned resolution, an administrative penalty ranging between 1 percent and 10 percent of the total amount of sales of products for the period during which violation took place, and for a maximum period of three years.
  • Other penalties for violations of the Law include both criminal and pecuniary. A person who commits any of the following acts may face imprisonment of up to one year and/or a fine ranging between BD 5,000 and BD 50,000:

  • Provides the Authority with false or misleading data, or data that is contrary to what is recorded in documents and registers in his possession;
  • Withholds any data, information, records or documents which are required to be provided or available to the Authority for the performance of its duties under the Law;
  • Prevents or delays the work of the Authority's inspectors or Authority's ongoing investigation;
  • Destroys any documents that are related to an investigation that is being conducted by the Authority.
  •  

    ]]>
    Sat, 01 Aug 2020 21:01:00 GMT
    <![CDATA[Extradition Treaty of UAE]]> Extradition Treaty of UAE

    In International Law, extradition is when one state (Requesting state) requests another state (Requested state), to effect the return of a person for trial for a crime punishable under the Requesting state's laws and committed outside the Requested state (state of refuge).

    The extraditable person could be:

  • charged with a crime but not yet tried;
  • tried and convicted who have escaped custody; and
  • those convicted in absentia.
  • Except for the protection of special national interests, states do not apply their penal laws to acts which are committed outside their boundaries as per the principle of territoriality of criminal law.

    Extradition between countries is regulated by diplomatic treaties and within countries by extradition acts. Belgium, in 1833, adopted the first act providing for extradition.

    Extradition acts primarily specify the extraditable crimes, clarify extradition procedures, and set out the relationship between the international treaties and extradition act. National laws vary regarding the relationship between extradition acts and treaties. In the US, extradition may be granted only pursuant to a treaty and only if Congress has not legislated to the contrary. A similar situation exists in Belgium, the Netherlands and Britain whereas Switzerland and Germany extradite without a formal convention in cases where the Requesting state and their governments have exchanged declarations of reciprocity. Fugitives are also sometimes surrendered by states solely as an act of goodwill. However, countries without extradition agreements with certain other countries have been considered as a haven for the fugitives. Certain principles of extradition are common to many countries. For instance, many states decline any obligation to surrender their own nationals. In Britain, the United States and Argentina, nationals may be extradited only if it is authorized by the governing extradition treaty. Another instance of a common principle is double criminality. This principle stipulates that the alleged crime for which extradition is being sought must be criminal in both the Requesting and the Requested countries.

    The United Arab Emirates sends and receives numerous extradition requests every year. Extradition requests sent by the UAE are prepared and sent by the International Co-operation Department of the Public Prosecution. This department ensures that requests fulfil the conditions set forth in the governing law of Federal Law Number 39 of 2006 on Mutual Judicial Co-operation in Criminal Matters ("2006 law") which was passed to facilitate the UAE's co-operation with foreign and international judicial authorities. The 2006 law empowers federal courts and the Ministry of Justice, under enumerated circumstances, to provide information to foreign authorities regarding the identity and whereabouts of an individual, search persons and premises, seize property, and obtain information and evidence that might assist their foreign counterparts in conducting investigations or making extradition agreements. It also ensures that the documents are duly translated into the official language of the Requested country and that the request is sent through the proper diplomatic channels.

    In respect of extradition requests received by the UAE from other countries, the relevant UAE court tries the matter to decide whether that request is in conformity with the relevant governing law, and accordingly, accepts the extradition of the subject of the request to the Requesting country. The competent court will refuse extradition if the extradition request fails to fulfil the conditions of the applicable law. Therefore, UAE courts are bound to apply the bilateral and multilateral treaties if these exist. Otherwise, they will resort to the domestic law regulating judicial co-operation to decide whether to accept or refuse a request for extradition.

    Extradition can be a complex matter and is relatively simplified by the presence of treaties between the UAE and a significant number of countries that have strong relations with the UAE. The UAE fully understands the importance of international judicial co-operation and more precisely extradition in combatting crimes.

    I. Extradition Treaty of UAE with KSA, Kuwait and Bahrain

    Riyadh Arab Convention on Judicial Co-operation ("Riyadh Convention"), a multilateral treaty signed and ratified by the UAE for judicial co-operation was ratified in the UAE by Federal Decree Number 53 of 1999. The Riyadh Convention was signed by most Arab countries including Algeria, Bahrain, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Oman, Qatar, Saudi Arabia and Tunisia.

    As per Article 38 of the Riyadh Convention, each contracting party undertakes to extradite persons found on its territory charged with having committed a crime by the competent authority or convicted of having done so by a judicial body of other contracting parties.

    Article 39 of the Riyadh Convention deals with the extradition of nationals.

    A contracting party may refuse to extradite its national provided that the state party within limits covered by its jurisdiction undertakes to charge the national who has committed a crime punishable by law in the territory of any other contracting party. The committed crime by the national must be one for which:

    1) the laws of the two states concerned impose a detention penalty of at least one year; or

    2) if a more severe penalty is foreseen in the laws of any of the two contracting parties.

    Article 40 of the Riyadh Convention states the conditions for extradition as:

  • The individual is charged with committing an act punishable by the laws of each of the two contracting parties (The Requesting state party and the Requested state party) where both laws provide for a detention penalty of one year or a more severe penalty.
  • The individual is charged with acts not punishable by the laws of the Requested state party or where the penalty for the act under the laws of the Requesting state party has no correspondent under the laws of the Requested state party. The same penalty shall apply if the individual prosecuted is a national of the Requesting state party or a national of another contracting party whose laws provide for the same penalty as those provided under the laws of the Requesting state party.
  • The individual is convicted in the presence or absentia by the courts of the Requesting state party where the crime imposes a detention penalty of one year or a more severe penalty, for acts punishable as per the laws of the Requested state party.
  • Nevertheless, there are crimes which are not subject to extradition as laid down in Article 41 of the Riyadh Convention:

  • The crime for which extradition requested is a political crime or one limited to violating military duties. Crimes such as an assault on kings and presidents of the contracting parties or their wives or their ascendants or descendants, heirs apparent or vice-presidents of the contracting parties, murder and robbery committed against authorities, individuals or means of transport and communications, despite being of a political purpose, will not be considered crimes of a political nature.
  • The crime for which extradition requested was committed in the Requested state party's territory, except if the crime caused damage to the interests of the Requesting state party and its laws provide that such crime be prosecuted and punished.
  • The crime has been the subject of a final judgement in the Requesting state party.
  • At the time the extradition request was received, the legal action was fortified, or the penalty was dropped due to passage of time.
  • The crime was committed outside the Requesting state party's territory by a person not carrying its nationality, and the law of the Requested state party does not provide for prosecution when the crime is committed outside its territory.
  • The Requesting state party has issued an amnesty.
  • If charges relating to the crime have been made in the Requested state party's territory, or if a judgement was passed in respect of such crime in a third contracting party's territory.
  • Article 9 of UAE's 2006 law states similar legal obstacles (as mentioned in Article 41 of the Riyadh Convention) that will lead to non-extradition along with additional grounds for non-extradition such as:

  • If significant grounds contribute to believe that the extradition request is aimed to prosecute or punish a person for reasons related to his ethnic or religious affiliation, or his nationality or political opinions.
  • If the requested person underwent investigation procedures or trials for the same crime subject of extradition and was acquitted; or convicted but served the punishment for which he was judged.
  • The person was subjected or could be subjected in the Requesting state's territory to torture, inhuman treatment, humiliating treatment or cruel punishment which does not conform to the crime.
  • As per Article 42 of the Riyadh Convention, the competent authority of the Requesting state party shall submit an extradition request in writing to the competent authority of the Requested state party along with other necessary documents and enclosures.

    Article 43 of the Riyadh Convention permits the detention of the individual whose extradition is requested in case of urgency and based on a request by the competent authority of the Requesting state party. The individual shall be released if the Requested state party does not receive the necessary documents or a request to extend the detention within 30 days from the date of arrest. (Article 44 of the Riyadh Convention).

    The multiplicity of Extradition Requests (Article 46 of the Riyadh Convention):

    If the Requested state party receives several requests for extradition for the same crime, priority shall be as follows:

  • The first priority shall be given to the Requesting state party whose interests were damaged by the crime.
  • Next priority to the Requesting state party in whose territory the crime was committed.
  • Next to the Requesting state party of which the individual to be extradited was a national at the time of committing the crime.
  • However, if circumstances converge priority shall be accorded to the first Requesting state party to submit the extradition request. If the extradition requests relate to multiple crimes, weighing them shall be based on the circumstances and seriousness of the crime and the place in which it occurred.

    UAE has set up a five-stage judicial mechanism to enable the person requested for extradition to challenge the extradition process as follows:

  • The Local Interpol Authorities in the UAE.
  • The Public Prosecution heading the International Judicial Matters
  • The Court of Appeal
  • The Cassation Court
  • The Ministry of Justice & The Ministry of Interior
  • II. Extradition Treaty of UAE with India

    Law relating to extradition in India is governed by the Extradition Act, 1962 (the "1962 Act") and the Extradition Treaties operating between India and other countries. Section 34 of the 1962 Act states extra-territorial jurisdiction, that is, an extradition offence committed by a person in a Foreign State shall be considered to have been committed in India and is liable to be prosecuted in India for such offence. Under Section 216 of the Indian Penal Code, 1860 read with the Constitution of India, 1950 (Schedule VII, List I, Item 18), extradition may be defined as, the action of giving up a fugitive criminal to the authorities of the State in which the crime was committed. Section 3(4) of the 1962 Act categorically states that, in the absence of an extradition treaty between India and any Foreign State, the Central Government may, by notified order, treat any Convention to which India and the Foreign State are parties, as an extradition treaty providing for extradition as specified in that Convention. As per Section 2(f) of the 1962 Act, only "fugitive criminals" may be extradited. Fugitive criminal, as per the extradition law prevailing in India means a person who is accused or convicted of an extradition offence which was committed within the jurisdiction of a Foreign State, and a person who while in India, conspired, attempted to commit, incited or participated as an accomplice in the commission of an extradition offence in the Foreign State. As per Section 2(c) of the 1962 Act, an extradition offence is an offence which is provided in the extradition treaty with the Foreign States. In case of absence of a treaty, an extradition offence is an offence punishable with imprisonment for a minimum term of one year as per the laws prevailing in India or of a Foreign State. Section 2(a) of the 1962 Act defines a composite offence as, an act or conduct of a person occurring wholly or in part in a Foreign State or in India, effect of which (or intended effect which) taken as a whole constitutes an extradition offence in India or in a Foreign State.

    For the surrender of a fugitive criminal, a requisition is to be made to the Central Government by:

  • A diplomatic representation by the Foreign State, at Delhi; or,
  • The Government of the concerned Foreign State may communicate with the Central Government through its diplomatic representation in that State; or,
  •  By other modes settled by arrangements ensuing between India and other countries.
  • The Central Government may then, if it thinks fit, order for an inquiry by a Magistrate. The Magistrate shall issue an arrest warrant for the fugitive criminal under Section 6 of the 1962 Act. After the Magistrate has enquired the case, if a prima-facie case is made out in support of the requisition, the Magistrate may commit the fugitive criminal to prison; shall report the result of the inquiry along with the written submission, if any, filed by the fugitive criminal to Central Government for consideration. However, if a prima-facie case is not made out in support of the requisition, then, Magistrate shall discharge the fugitive criminal. Upon satisfaction qua the prima-facie report of the Magistrate, the fugitive criminal may be surrendered to the Foreign State.

    As per Section 31 of the 1962 Act, a fugitive criminal shall not be surrendered or returned if, the offence is political in nature; the prosecution of offence is barred by time in the Foreign State; if the person is accused of any offence in India, other than the offence for which extradition is sought, or is undergoing sentence under any conviction in India until after he has been discharged, whether by acquittal or on the expiration of his sentence or otherwise; and until the expiration of 15 days from the date of his being committed to prison by the Magistrate.

    Under Section 34A of the 1962 Act, if the Central Government is of the opinion that a fugitive criminal cannot be returned or surrendered, pursuant to a request for extradition by the Foreign State, the Central Government, if it deems fit and proper, can take steps to prosecute such fugitive criminal in India. A provisional arrest is provided under Section 34B of the 1962 Act as upon urgent request from the Foreign State; the Central Government may request the Magistrate (having competent jurisdiction) to issue an immediate provisional warrant for the arrest of the fugitive criminal. The fugitive criminal is to be released upon the expiration of 60 days if no request qua his surrender or return is received, within the period of 60 days. The 1962 Act also makes provisions for the multiplicity of requests from more than one State for the surrender of a fugitive criminal. Section 30 of the 1962 Act stipulates that "if requisition for the surrender of a fugitive criminal is received from various foreign States the Central Government may, considering the circumstances of the case, surrender the fugitive criminal to such State as the Government thinks fit." However, treaties between India and the Kingdom of Bahrain, Kuwait, the Sultanate of Oman, the UAE and Uzbekistan all consider requests priority wise.

    Section 34C of the 1962 Act provides that, where a fugitive criminal has committed an extradition offence punishable with the death penalty in India, is surrendered or is returned by the Foreign State on request of the Central Government (India); and the laws of the Foreign State do not provide for death penalty qua the offence for which the fugitive criminal is convicted, then the fugitive criminal shall be liable for the punishment of life imprisonment qua the offence.  There is no provision of statutory appeal vis-à-vis extradition proceedings in the 1962 Act. For the redress of any grievance against any order vis-à-vis extradition proceedings, the writ jurisdiction of the High-Court concerned has to be invoked.

    In 1999, the United Arab Emirates and India had entered into an agreement on mutual legal assistance in criminal suits. In 2000, the two countries signed an extradition treaty. The individual requested to be extradited must be accused of an offence in the country requesting the extradition. Moreover, such an offence must be punishable under the laws of both India and the UAE with imprisonment for minimum one year, or the person has been sentenced by the court of the other country for minimum six months.

    India, like many other countries, adheres to the principle of not extraditing its own nationals. Indian nationals who return to India after having committed offences in the Gulf countries are not to be extradited to those countries. Such accused Indian nationals are liable to be prosecuted in India in accordance with Indian Law, as the bilateral treaties with these States (except Oman) preclude  extradition of own nationals. India follows a dual system and extradites nationals on the basis of reciprocity where, if the other Treaty State does not extradite, India too bars extradition of its own nationals.

    Conclusion

    The importance of a formal extradition arrangement can be validated by the fact that the absence of it may lead to rejection of the extradition requested by a state. This was witnessed when the lack of a formal agreement between India and Argentina was a primary reason for Argentina's denial of extradition of Ottavio Quattrocchi, who was wanted in India in relation to the infamous Bofors case.

    Extradition is a critical process to bring back those accused of financial crimes and corruption to stand trial. It is a laborious and time-consuming process which is eventually subjective to the benevolence the foreign state, but extradition is the only way to bring back the accused persons who are evading the grasp of justice.

     

    ]]>
    Mon, 06 Jul 2020 11:31:00 GMT
    <![CDATA[Free Zone Bahrain Logistic Zone]]> Free Zone Bahrain Logistic Zone

    Q1. What law established this Zone?

    The Bahrain Logistics Zone is the first boutique logistics park in the region which was launched in 2008 and is strategically located adjacent to Khalifa Bin Salman Port, which is a state-of-the-art port in Bahrain, towards the North.

    Q2. What are the principal internal regulations governing this Free Zone?

    The principal internal regulations are managed and governed by the Ports and Maritime Affairs, at the Transportation and Telecommunications Ministry.

    Q3. Does this Free Zone have reciprocal arrangements with other free zones?

    No, the Bahrain Logistics Zone does not have reciprocal arrangements with other free zones.

    Q4. What key areas of local legislation must a business operating in this Free Zone still comply with? What are the most prominent examples of how this affects operations?

    The key areas of Bahrain Legislation which businesses operating in this Free Zone must comply with are:

  • Bahrain Maritime Code.
  • Ship Registration Law.
  • Bahrain Ministerial Decision No. 6/2001 with regards to the promulgation of registration of the ships as well as the determination of safety conditions.
  • GCC Safety Regulations for Non-conventional ships.
  • Bahrain Ministerial Decision No. 14/2016 concerning approved classification societies.
  • Bahrain Ministerial Decision No. 20/2016 concerning the Implementation of Conventions related to marine navigation.
  • Bahrain Ministerial Decision No. 9/2017 concerning the licensing for Marine Services.
  • Bahrain's Labor Law, Bahrain Law No. 36/2012.
  • The above list is not exhaustive, but any laws which are not covered by the internal regulations of the Free Zone must be complied with.

    Q5. What key agencies do businesses operating in this Free Zone need to register with or be aware of?

    The agencies a business operating in this Free Zone needs to register with mainly depends on the type of activity carried out by the company.

    Some agencies include:

  • Ports and Maritime Affairs.
  • Foreign Affairs Ministry.
  • Bahrain Chamber of Commerce.
  • The Supreme Council of Environment.
  • Industry and Commerce Ministry.
  • This list is not exhaustive.
  • Q6. How does a company set up in this Free Zone?

    These are the steps generally involved:

    I. Apply for Serviced/Land Facilities

    Prerequisites Review is needed to check eligibility to ensure that the company meets them.

  • Complete the Application Form, which includes:
  • Financial information (Audited financial statement- three years).
  • All company information, including a business plan or annual report to demonstrate competence.
  • The application is submitted with all additional supporting documents.
  • The BLZ Selection Committee generally responds with the decision in two weeks.
  • II. Check the eligibility of the company.

    III. Selection of the nature of business.

    IV. Evaluation.

    V. Selection Criteria.

    VI. Application decision.

    Q7. What features go companies set up in this Free Zone have?

    Like most other Free Zones, Bahrain Logistics Zone offers various incentives which attract foreign and local investors like:

  • 100% of foreign company ownership.
  • 0% Corporate Tax.
  • Bonded and non-bonded activities permitted.
  • Access to training support and government financial grants.
  • Access to bilingual and highly educated Bahraini workforce.
  • Dedicated support team.
  • Highly competitive costs.
  • Most efficient and fastest access to Saudi Arabia.
  • 100% repatriation of profits, capital and dividends.
  • Around the clock processing of shipments.
  • Q8. What can companies set up in this Free Zone do?

    These are the activities a company in BLZ can carry out:

  • Regional Distribution and Contract Logistics.
  • Freight Forwarding Services.
  • Courier and Express Services.
  • E-commerce and Fulfillment Operations.
  • Repacking, packaging, labelling, palletizing etc.
  • Q9. What can companies set up in this Free Zone not do?

    Generally, any activity which does not conflict with the applicable laws in Bahrain is not permitted in the Free Zone.

    Q10. What types of business are allowed to operate in this Free Zone?

    These are the activities a company in BLZ can carry out:

  • Regional Distribution and Contract Logistics.
  • Freight Forwarding Services.
  • Courier and Express Services.
  • E-commerce and Fulfillment Operations.
  • Repacking, packaging, labelling, palletizing etc.
  • Q11. What inheritance laws apply in this Free Zone?

    The inheritance law, in Bahrain, is Sharia law for Muslim and Bahrain Law No. 11/1971 regarding Inheritance and Settlement of Estates of Non-Muslim Aliens.

    Q12. What taxation applies?

    BLZ offers zero percent Corporate Tax.

    Q13. What accounting and auditing rules do businesses operating in this Free Zone need to

    adhere to?

    The company undertakes to maintain regular accounts of all the activities carried out by it, approved by an accounts auditor who is licensed to conduct the profession of auditing and accounting.

    Q14. Where do businesses operating in the free Zone generally locate their bank accounts?

    Working companies are required to open a local bank account.

    Q15. Are there any specific rules governing when the moveable property is removed from the free zone area or transferred into the free zone area from another jurisdiction?

    Activities are generally confined to the Zone. Operation in other zones may require the assistance of a local agent or distributor.

    Q16. Are any specific licenses required to operate as a specific type of company in this Free Zone?

    The users of Zones cannot conduct business except after obtaining a License. The licenses are issued by an integrated online commercial registration portal called the Sijilat. Sijilat's operations are handled by the Industry, Commerce and Tourism Ministry. This portal allows investors to obtain their commercial registrations for their proposed business in Bahrain.

    Q17. Is there any specific ongoing regulation or monitoring firms operating as particular types of companies by this free zone authority?

    The principal internal regulations are managed and governed by the Ports and Maritime Affairs, at the Transportation and Telecommunications Ministry.

    Q18. How are disputes settled in this Free Zone?

    Generally, the contract mentions the dispute resolution mechanism to be followed in a situation where a dispute arises. In the absence of this, the courts in Bahrain assist in resolving disputes. There is a dual court system in Bahrain:

  • Civil Courts: This consists of a Supreme Court and subordinate summary courts. These Summary courts are in all communities which encompass separate courts for each civil and criminal matters. The highest appellate court is the Supreme Court of Appeal, which also decides on the regulations and laws and its constitutionality.
  • Sharia Courts: Sharia courts primarily deal with personal status matters, which include inheritance. The Sharia Court of First Instance is in all communities. The Court of Appeal is in Manama. Any case which goes beyond this Court of Appeal is taken to the Supreme Court of Appeal (Civil System).
  • Q19. How are disputes between onshore companies and companies in this free Zone settled?

    Generally, the contract mentions the dispute resolution mechanism to be followed in a situation where a dispute arises. In the absence of this, the courts in Bahrain assist in resolving disputes. There is a dual court system in Bahrain:

  • Civil Courts: This consists of a Supreme Court and subordinate summary courts. These Summary courts are in all communities which encompass separate courts for each civil and criminal matters. The highest appellate court is the Supreme Court of Appeal, which also decides on the regulations and laws and its constitutionality.
  • Sharia Courts: Sharia courts primarily deal with the personal status matter, which includes inheritance. The Sharia Court of First Instance is in all the communities. The Court of Appeal is in Manama. Any case which goes beyond this Court of Appeal is taken to the Supreme Court of Appeal (Civil System).
  • Q20. What are the main rights and duties of an employer and employee working in this Free Zone?

    Bahrain Law Number 36/2012 issuing Bahrain's Labor Law provides a comprehensive framework for employment in Bahrain. This law encompasses the protection of various types of employees irrespective of the nature of employment like a local, expatriate, full time or part-time. Certain employee rights are highlighted in the Labor Law and include 30 days of annual leave, maximum thresholds etc. Additionally, there is a prohibition on discrimination between employees based on ethnicity, religion, language and belief etc. When an employment contract is signed, the employer has an expectation of sincerity, due diligence from the employee towards complying with the terms of the employment agreement, failing which the employer may initiate legal proceedings as agreed in the contract (and vice versa).

    Q21. How are employment disputes between employers and employees working in this Free Zone settled?

    In addition to Bahrain's Labor Law, unless a separate mechanism has been agreed on in the employment contract, the labor dispute resolution is addressed before a designated body which is the labor court. Additionally, the Labor and Social Development Ministry may also be approached to settle or initiate any dispute.

    Q22. What entry qualifications and permits are required for staff working in this free Zone, and how are employees registered with the authorities?

    The employment contract must be in writing (Arabic), and two copies maintained, one of which will be the employer's and the other, of the employee. Where the contract is not in Arabic, under Article 19 of Bahrain Law Number 36/2012, the Arabic version of the employment contract must be accompanied. There are situations where there is the absence of a written contract between the employer and the employee, and in these cases, the employee may establish their rights with evidence.

    Q23. How are staff working within this Free Zone registered with the authorities?

    A foreign employer may not engage the employees in Bahrain if they have not been registered with the Industry, Commerce and Tourism Ministry under its Commercial Registry. Employers also have to be registered with the Labor Market Regulatory Authority (LMRA), and after registration, work permits will be granted.

    A Ports and Maritime Authority Work Permit also needs to be applied for all sites at the Zone which is controlled by the Ports and Maritime Authority.

    Q24. What rules govern the remuneration and minimum benefits of staff working in this Free Zone?

    Bahrain Law Number 36/2012 issuing the Bahraini Labor Law provides a comprehensive framework for employment in Bahrain, and it also governs the remuneration and minimum benefits of staff working in this Free Zone.

    Q25. What rules govern the working time and leave of staff working in this Free Zone?

    Bahrain Law Number 36/2012 issuing the Bahraini Labor Law provides a comprehensive framework for employment in Bahrain and also governs the leave and working time of staff working in this Free Zone.

    Q26. What are the main features of a property lease in this Free Zone, and what are the key restrictions when leasing a property?

    An application form has to be completed and submitted for relevant clearances, and a reference to it must be made in the Lease Agreement for covered storage areas in warehouses. All the commercial terms must be agreed on and adhered to. It is essential to get a pre-contract clearance depending on the activity which will be carried out on the premises. The Lease Agreement has to be signed, attested and duly registered.

    Q27. Is it possible to apply for a building permit in this Free Zone? How is this done, and what steps are required?

    No regulations could be located.

    Q28. What environmental requirements must construction companies building in this free Zone consider, e.g. form of building, landscaping or building height?

    No regulations could be located.

    Q29. What are the key restrictions when leasing a property in this Free Zone?

    Primarily, a company must be registered in this Free Zone to lease property here. On meeting the prerequisites of incorporating a company in this Zone and obtaining the permit or license, the company may apply for a Lease Agreement, through several clearances.

    Q30. What are the rules governing the use of utilities in this Free Zone?

    No rules could be located.

    Q31. How do retail premises establish themselves in this Free Zone?

    Retail Premises do not establish themselves in this Free Zone as the purpose of the Free Zone is maritime and port activities.

    Q32. Is it possible for hotels and retail establishments to operate in this free Zone- how do they establish themselves?

    Generally, hotels and retail establishments do not operate in this Free Zone.

     

    ]]>
    Fri, 08 May 2020 12:18:00 GMT
    <![CDATA[Consumer Protection Bahrain and Oman]]> Q&A on Consumer Protection and Product Liability in Bahrain and Oman

    Sources of law

    Q1. What are the principal legislation and regulation pertaining to product liability?

    The main areas of law and regulation relating to product liability are:

    I. Oman

    Product liability is regulated by the:

  • Consumer Protection Law (Royal Decree No 66 of 2014), which sets out liabilities for providers and advertisers.
  • Commercial Agency Law (Royal Decree No 26 of 1977, as amended) under which registered agents must pass on the benefit of manufacturers' warranties to consumers
  • II. Bahrain

    In Bahrain, product liability is regulated by the Civil Code, Consumer Protection Law No 35 of 2012 for protection of the consumer and Executive Regulations via Resolution Number 66 of 2014. The seller must provide the buyer with all the necessary information about the item being sold. The seller shall be liable to the consumer for selling the defective goods.

    The National Committee for Consumer Protection (NCCP) provides for oversight over such instances.

    Q2. How to establish liability under the most causes? When is a product said to be defective? Does strict liability apply in certain circumstances?

    In almost all GCC nations, to establish liability, the consumer may file the case on the grounds of a tort, liability under the contract and breach of the relevant consumer protection legislation.

    The following must be established to prove liability in tort:

  • duty of care from the supplier / manufacturer towards the consumer.
  • Breach of that duty of care due to manufacture, defective design, or warnings or instructions.
  • Causation link between the defect in the product and the damage that customer faced.
  • As per Oman Royal Decree 66 of 2014 defect is defined as any reduction in the value of a commodity/service for the purpose it was manufactured or produced and that prevents the consumer from benefiting from it or render the same unfit for the intended purpose in a manner that is beyond the control of the consumer.

    According to Bahrain's Resolution Number 66 of 2014: Any mistake in designing, manufacturing, producing, or storing the commodity that would lead to harm to the consumer, or to depriving him completely or partially of their benefit, or a decrease in their value or benefit.

    Product liability claims are based on strict liability claims, and hence manufacturers are liable irrespective of that fact they were negligent or not.

    Q3. Who is shall be liable for a defective product? What duties do they have and towards whom?

    The liability for defective products falls on both manufacturers and suppliers.

    Under Oman Royal Decree 66/2014, Article 22 lays down that despite the legal guarantees/ agreements for the protection of the customer, the provider of goods and services shall guarantee the quality delivered to the customer as per the standards of health, safety and environmental conditions. Under Bahrain Executive Regulations, A written declaration issued by the supplier or his representative, that the product subject to the warranty is free from defects and conforms to the specifications approved by law, and his pledge to fix any defect or damage to it within a specified period

    Excluding/limiting liability

    Q4. How can supplier limit its liability for defective products and any statutory restrictions on a supplier doing this? Is there a mandatory warranty period for the products?

    A supplier may limit its liability for defective products by inserting relevant warnings on products, for example, but this will not necessarily protect it. The relevant Consumer Protection Authorities and the courts of the GCC nations are rather pro-consumer when it comes to consumer complaints.

    In Oman, the law is silent on this point, and the court shall determine such questions with regards to such question, but the courts generally resort to principles of law laid down in Oman's Civil Code and Civil Transaction Law.

    In Bahrain, Article 11 lays down that the supplier shall bear the costs of transporting the defective product, as well as the costs of sending technicians to replace or repair the defective part of it, and all costs of recovering the product. The Executive Regulations lays down that the provider shall be exempted from the liability if he is not the manufacturer of that product.

    Product Liability Litigation

    Q5. Which courts are competent to try product liability cases?

    In Oman, the Public Authority for Consumer Protection (PACP) is empowered to oversee and enforce the consumer protection law in Oman. The complaint is usually resolved either through amicable resolution between the consumer and the trader or in case the consumer does not accept PACP's decision, then PACP refers the matter to the public prosecution for framing charges against the trader/dealer/manufacturer of goods and services. In Bahrain, Consumer Protection Directorate Services under the Ministry of Industry, Commerce and Tourism, receives and responds to the consumer complaints.

     

    ]]>
    Mon, 02 Mar 2020 14:54:00 GMT
    <![CDATA[CCTV - Invasion to Privacy in the GCC]]> CCTV & Invasion to Privacy in the GCC

    The world in this millennium is techno-dependent for almost every aspect of life whether its payment of debts through credit card, entering into contracts by parties distant through online, i.e. e-contracts, e-booking of railway or air tickets and even social networking platforms. The technology and communication revolution is at a global level, as this revolution has crossed political boundaries, demolished economic barriers and proved effective in making up of cultural differences. Technology has spread its roots in even far-flung areas so that individuals from different corners of the world can communicate freely and cost-effectively. This has compelled governments all over the world to review the laws and policies related to information technology.

    Privacy as defined in Black's Dictionary right of a person and the persons' property to be free from unwarranted public scrutiny and exposure. Privacy as a right has changed by leaps and bounds in recent times. One of the most basic liberties of the individuals after the right to life is right to privacy that has been incorporated in the legal system through legislative measures or through judicial pronouncements in various jurisdictions. The right to privacy holds high pedestal as privacy helps to create barriers and manage boundaries to defend ourselves from unwarranted interference with our personal lives and allows us to negotiate who we are and how we desire to engage with the outside world. Privacy essentially limits access to domains related to us. For example, limiting who has access to our personal details, communications and information. Also, significant to bear in mind is that there is a slew of international conventions and charters which exist to reinforce the norm that right to privacy is an essential component of human life which makes life more than mere animal existence. Some of the international conventions and charters which uphold right of privacy are as follows:

    • Article 12 of Universal Declaration of Human Rights;
    • Article 17 of the International Covenant on Civil and Political Rights;
    • Articles 16 and 21 of the Arab Charter on Human Rights;
    • Article 14 of the United Nations Convention on Migrant Workers;
    • Article 16 of the UN Convention on the Rights of the Child;
    • Article 10 of the African Charter on the Rights and Welfare of the Child;
    • Article 4 of the African Union Principles on Freedom of Expression (the right of access to information);
    • Article 11 of the American Convention on Human Rights;
    • Article 5 of the American Declaration of the Rights and Duties of Man,
    • Article 21 of the ASEAN Human Rights Declaration; and
    • Article 8 of the European Convention on Human Rights.

    Relevant conventions for our perusal in the aforementioned list are:

    • Article 12, Universal Declaration of Human Rights: No one shall be subjected to arbitrary interference with his privacy, family, home or correspondence, nor to attacks upon his honour and reputation. Everyone has the right to the protection of the law against such interference or attacks.
    • Article 17, International Covenant on Civil and Political Rights: (1) No one shall be subjected to arbitrary or unlawful interference with his privacy, family, home or correspondence, nor to unlawful attacks on his honour or reputation. (2) Everyone has the right to the protection of the law against such interference or attacks."
    • Article 16(8) of the Arab Charter of Human Rights: The right to respect for his security of person and his privacy in all circumstances.
    • Article 21 of Arab Charter of Human Rights: (1) No one shall be subjected to arbitrary or unlawful interference with regard to his privacy, family, home or correspondence, nor to unlawful attacks on his honour or his reputation. (2) Everyone has the right to the protection of the law against such interference or attacks

    Similarly, in line with the discussion in above paragraphs the legal regime of protecting privacy intrusion through CCTV is covered by mainly two legislations- firstly, Article 378 of the Federal Law Number 3 of 1987 of UAE Penal Code (the UAE Penal Code) as amended by Federal Law Number 34 of 2005 states as follows: 

    "Shall be sentenced to detention and to a fine, whoever violates the private or familial life of individuals, by perpetrating one of the following acts, unless authorized by law, or without the victim's consent:

    i. If he lends his ears, records or transmits, through an apparatus of any kind, conversations that took place in a private place or through the telephone or any other apparatus.

    ii. Captures or transmits, through any kind of apparatus, the picture of a person in a private place. Should the acts, referred to in the two-preceding paragraph, be perpetrated during a meeting in front of the attending persons, their consent shall be presumed.

    Shall be sentenced to the same penalty, whoever publishes through any means of publicity, news or pictures or comments related to the secrecy of private or familial life of the individuals, even if correct.

    Shall be sentenced to detention for a maximum period of seven years and to a fine, the public servant who perpetrates one of the acts mentioned in the present article relying on the strength of the authority of his position.

    The apparatuses and other objects that that may have been used in perpetrating the crime shall, in all cases, be confiscated and order shall be given to erase all relative recordings and destroy the same."

    Secondly, Article 21 of Federal Decree Law Number 5 of 2012 On Combating Cybercrimes states: "Shall be punished by imprisonment of a period of at least six months and a fine not less than one hundred and fifty thousand dirhams and not in excess of five hundred thousand dirhams or either of these two penalties whoever uses a computer network or and electronic information system or any information technology means for the invasion of privacy of another person in other than the cases allowed by the law and by any of the following ways:

  • Eavesdropping, interception, recording, transferring, transmitting or disclosure of conversations or communications, or audio or visual materials.
  • Photographing others or creating, transferring, disclosing, copying or saving electronic photos.
  • Publishing news, electronic photos or photographs, scenes, comments, statements or information even if true and correct. Shall also be punished by imprisonment for a period of at least one year and a fine not less than two hundred and fifty thousand dirhams and not in excess of five hundred thousand dirhams or either of these two penalties whoever uses an electronic information system or any information technology means for amending or processing a record, photo or scene for the purpose of defamation of or offending another person or for attacking or invading his privacy"
  • There has been an increasing number of incidences in UAE in which usage of CCTV as an apparatus to commit infringement of privacy have come into light. CCTV recording the details such as our face, the time of our presence, car numbers or our leisure time with family and friends. Though there is no law at Federal level with regards to CCTV control and regulation but certain Emirates have regulation such as Dubai Law Number 24 of 2008 which has Article 16 according to which the business concerns that must satisfy certain security specifications including employing CCTV such as: hotels and short-stay residences, financial and monetary institutions, manufacture and sale of precious metals and stones, shooting ranges, military and hunting equipment stores, shopping and leisure centers, precious materials storage facilities, hazardous materials storage facilities, precious commodities stores/outlets, large department stores, petrol stations, internet services, storage services, aircraft and balloon clubs. Besides Dubai, even Abu Dhabi under Smart Abu Dhabi Vision Abu Dhabi Law Number 5 of 2011 was passed by the Executive Council with statutory aims of:

  • establish Monitoring and Control Centre;
  • Electronic monitoring of public and private places and establishments; and
  • developing the infrastructure of follow-up and control systems to serve the competent authorities of Emirates.
  • Also, operating monitoring devices without Monitoring and Control Center's (MCC's) approval is an offence punishable by imprisonment of up to two years and/or a fine of no less than AED 50,000 to AED 200,000.

    Similarly, Kuwait under Law Number 61 of 2015 concerned the regulation and installation of surveillance cameras and security also provides for installation of CCTV at hotels and hotel apartments, commercial complexes, cooperative societies and residential complexes, banks and money exchange shops and shops selling gold and jewelry, sporting and cultural clubs and youth centers, shopping malls, entertainment, hospitals, clinics, warehouses and stores precious materials and hazardous materials and refueling stations, and other facilities to be determined by a decision of the Council Minister at Kuwait.

    Oman has stipulated law for CCTV to be installed at food eateries, according to which CCTV is mandatory and in event of its malfunctioning or stopping the establishment would be fined RO 100 minimum to RO 3000 maximum.

    Though howsoever, genuine the CCTV regulations may be and which serve the purpose of security and protection of people from anti-social and criminal elements there has been news report which reveals how CCTV recordings have been used as an intrusion to privacy of another person for malicious fun or as a nuisance. Recently, three government officials were accused of breaching the privacy through use of CCTV and the case is under hearing at Al Ain Misdemeanour Court. Also, in UAE taxis have started installing the CCTV cameras which are sparking anger from the customers. But given GCC being new domain for regulation for such sensitive and sophisticated CCTV regulations and surveillance much depends to be seen how the legal regime works.

    In conclusion, it could be said that institutions are keeping an electronic eye on people without involving the subjects how the information collected should be processed.  The law and technology should balance the national security concerns with individual rights of privacy.

    ]]>
    Sun, 02 Feb 2020 17:11:00 GMT
    <![CDATA[Freezone Bahrain International Investment Park]]> 1. What law established this free zone?

    The Bahrain International Investment Park (BIIP) was established in 2005 by the Industry, Commerce and Tourism Ministry (MoICT). The BIIP is considered the flagship business park. It houses over 114 multinational and manufacturing service companies.

    2. What are the main internal regulations governing this free zone?

    The internal regulations of this Free Zone are managed by the MoICT. It intends to devise clear legislative, legal and regulatory framework in current Free Zones as well as future Free Zones.

    3. Does this free zone has reciprocal arrangements with other Free Zones?

    No, BIIP does not have reciprocal arrangements with other free zones.

    4. What key areas of local legislation must a business operating in this free zone still comply with? What are the most important examples of how this affects operations?

    The key areas of Bahrain legislation which businesses operating in this Free Zone must comply with are:

    Commercial Companies Law, Bahrain Decree-Law No. 21/2001 as amended by Bahrain Law No. 1/2018.

    • Bahrain Ministerial Decision No. 17/2018.
    • The GCC Common Customs Law by Bahrain Royal Decree No. 67/2003.
    • Bahrain Decree Law No. 48/2018 on Value Added Tax (VAT Law).
    • Bahrain Decree-Law No. 7/1987 (Law of Commerce).
    • Bahrain Law No. 31/2018 (Competition Law).

    The above list is not exhaustive, but any laws which are not covered by the internal regulations of the Free Zone must be complied with.

    5. What key agencies do businesses operating in this free zone need to register with or be aware of?

    The agencies which a business operating in this Free Zone needs to register with mainly depends on the type of activity carried out by the company. For example, for industrial projects, a clearance is needed from the Environment and Climate Affairs Ministry.

    Some agencies include the:

    • Commerce and Industry Ministry.
    • Foreign Affairs Ministry.
    • Chamber of Commerce and Industry.
    • Environment and Climate Affairs Ministry.
    • Interior Ministry.
    • Justice, Islamic Affairs and Awqaf Ministry

    6. How does a company set up in this Free Zone?

    On receiving the completed application form, the registration of a new company in BIIP is pretty quick and straightforward.

    These are the steps generally involved:

    a. Submission of a completed Application Form.

    b. Documents reviewed by officials.

    c. Project Approval-payment of administration fee.

    d. On the approval of the officials, the business entity needs to be registered with the MoCIT.

    e. Once the above is completed, the entity needs to obtain an industrial license. There are several documents required for the incorporation of an entity in this Free Zone. These are:

    • BIIP application form.
    • Preliminary industrial license.
    • Entity's Company Profile.
    • Copy of the applicant's CPR/passport.
    • Registration Documents.
    • Tenancy Agreement: Lease of Plot.
    • Environmental and Industrial Approval.
    • Outline a business plan.
    • Preliminary site development plan.
    • Legal.
    • Financial.

    7. What features go companies set up in this Free Zone have?

    Like most other Free Zones which are granted benefits, incentives and other facilities, BIIP offers various incentives which attract foreign and local investors. BIIP is favoured because it is cheaper as compared to other Freezones. BIIP operates 24 hours a day and provides access to a variety of facilities which makes it an ideal free zone to set up a business in Bahrain. It also offers tax exemptions on tax duty for GCC and other Arab industries. BIIP is an exclusive investment park in the Middle East with enhanced facilities and customs services. BIIP is setting up a 'one-stop-shop' which will help potential investors with their application process as well as guidance on all the legal requirements.

    8. What can companies set up in this Free Zone do?

    These are the activities which a company in BIIP can carry out:

    • Manufacturing.
    • International services.
    • Food processing and packaging.
    • Aluminium smelting, rolling and export industries.
    • Iron and steel engineering.
    • Medical (i.e. Pharmaceuticals, medical devices).
    • Construction material manufacturing.
    • Material and chemical processing (i.e. Plastics, Fiberglass, Petrochemicals).
    • Information technology.
    • Consumer goods (i.e. Electronics, garments and textiles).
    • International services (i.e. consulting, marketing, logistics, knowledge-based services).

    9. What can companies set up in this Free Zone not do?

    Generally, any activity which conflicts with the applicable laws in Bahrain is not permitted in BIIP.

    These include:

    • Security threats.
    • Disruption of the computer or information technology services.
    • Activities not stipulated in the license.
    • Storage or possession of goods that are prohibited.
    • Commencing operations in BIIP without relevant approvals from authorities, like the environment approval.
    • Any other activities or acts are not permitted by a decision of the appropriate authorities.

    This list is not exhaustive, but rather the essence of what is prohibited in this Free Zone.

    10. What types of business are allowed to operate in this Free Zone?

    These are the activities which a company in BIIP can carry out:

    • Manufacturing.
    • International services.
    • Food processing and packaging.
    • Aluminium smelting, rolling and export industries.
    • Iron and steel engineering.
    • Medical (i.e. Pharmaceuticals, medical devices).
    • Construction material manufacturing.
    • Material and chemical processing (i.e. Plastics, Fiberglass, Petrochemicals).
    • Information technology.
    • Consumer goods (i.e. Electronics, garments and textiles).
    • International services (i.e. consulting, marketing, logistics, knowledge-based services).

    11. What inheritance laws apply in this free zone?

    The inheritance law is governed by Islamic Sharia Law.

    12. What taxation applies?

    There is no tax on income, capital gains, sales, estate interest, dividends or royalties. However Bahrain Decree-Law No. 48/2018 on VAT applies in BIIP.

    13. What accounting and auditing rules do businesses operating in this free zone need to adhere to?

    Companies have to undertake and maintain accounts for all the trading activities which are carried out by them.

    14. Where do businesses operating in the free zone generally locate their bank accounts?

    The companies are required to open a local bank account before obtaining BIIP. For the same, copy of the authorised signatory forms, commercial registration, MoCIT affiliation certificate and other relevant documents are required.

    15. Are there any specific rules governing when the moveable property is removed from the free zone area or transferred into the free zone area from another jurisdiction?

    Activities are generally confined to BIIP. Operation in other zones may require execution of a local agency agreement.

    16. Are any specific licenses required to operate as a particular type of company in this free zone?

    The companies in this Free Zone only carry out economic activity post obtaining the relevant license. Additionally, the company cannot practice an activity which has not been specified in the permit. Licenses issued in this zone are:

    • Industrial License
    • Manufacturing License
    • International Services.

    17. Is there any specific ongoing regulation or monitoring firms operating as particular types of companies by this free zone authority?

    The Operations of BIIP are monitored and regulated by the MoCIT.

    18. How are disputes settled in this free zone?

    Generally, the agreement stipulates the dispute resolution mechanism to be followed in a situation where a dispute arises. In the absence of the same, the courts in Bahrain assist in resolving disputes. The main mechanisms in Bahrain are:

    a. The Civil Courts and Sharia Courts.

    b. The Court of Appeal.

    c. Court of Cassation.

    d. Bahrain Chamber of Dispute Resolution (BCDR).

    19. How are disputes between onshore companies and companies in this free zone settled?

    Generally, the agreement stipulates the dispute resolution mechanism to be followed in a situation where a dispute arises. In the absence of the same, the courts in Bahrain assist in resolving disputes. The main mechanisms in Bahrain are:

    a) The Civil Courts and Sharia Courts.

    b) The Court of Appeal.

    c) Court of Cassation.

    d) Bahrain Chamber of Dispute Resolution (BCDR).

    20. What are the main rights and duties of an employer and employee working in this free zone?

    Bahrain Decree-Law No. 36/2012 promulgates Bahrain's Labour Law (Labour Law). Article 71 of Bahrain Decree-Law No. 36

    /2012 provides tthe worker is under an obligation to perform the duties which are entrusted to them under the provision so the

    employment agreement and the work regulations. They have to execute these instructions and orders of the employer for

    performing the work.

    21. How are employment disputes between employers and employees working in this free zone

    settled?

    In addition to the Labour Law, unless a separate mechanism has been agreed on in the employment contract, the labour

    dispute resolution is addressed before a designated body which is the Authority of settlement of individual labour disputes.

    22. What entry qualifications and permits are required for staff working in this free zone, and

    how are employees registered with the authorities?

    All the employment contracts must be registered with the authorities.

    While employing expatriates, three mandatory processes must be completed:

    a) Clearance by the Labour Ministry.

    b) Issuing of employment visas by the Immigration Department.

    c) Issuing of resident cards by the Immigration Department.

    23. How are staff working within this Free Zone registered with the authorities?

    Once the visa is issued, it is collected by the BIIP representative and deposited at an entry point in Bahrain, post which a

    deposit slip is issued. The copy of both is sent to the company.

    24. What rules govern the remuneration and minimum benefits of staff working in this Free

    Zone?

    The Labour Law provides a comprehensive framework for employment in Bahrain and it governs the remuneration and

    minimum benefits of staff working in this Free Zone.

    25. What rules govern the working time and leave of staff working in this Free Zone?

    The Labour Law provides a comprehensive framework for employment in Bahrain and it governs the remuneration and

    minimum benefits of staff working in this Free Zone.

    26. What are the main features of a property lease in this free zone, and what are the key

    restrictions when leasing a property?

    Once the company receives approval for the industrial license, the lease agreement has to be signed for that specific industrial

    area. BIIP provides a lease term of 25 years and competitive rental lands in an environmentally and professional positioned

    landscapes.

    27. Is it possible to apply for a building permit in this free zone? How is this done, and what

    steps are required?

    Yes, it is possible to apply for a building permit. Once the company obtains an industrial license and the application for the

    lease has been approved, the company then can proceed for securing a building permit for commencing construction.

    28. What environmental requirements must construction companies building in this free zone

    consider, e.g. form of building, landscaping or building height?

    Before signing the lease with BIIP, the company has to abide by the requisite environmental approvals from the environment

    protection agency. The Unified Guidebook of Building Permit Regulations provides for a detailed description on how buildings

    are permitted in Bahrain.

    29. What are the key restrictions when leasing a property in this Free Zone?

    Once the company receives approval for the industrial license, the lease agreement has to be signed for that specific industrial

    area. BIIP provides a lease term of 25 years and competitive rental lands in an environmentally and professional positioned

    landscapes.

    30. What are the rules governing the use of utilities in this free zone?

    Utilities in BIIP come under the Bahrain Electricity and Water regulations.

    31. How do retail premises establish themselves in this Free Zone?

    There are no particular restrictions prohibiting retail establishments from operating in BIIP. The same process would apply as

    for any other type of company incorporation.

    32. Is it possible for hotels and retail establishments to operate in this free zone- how do they

    establish themselves?

    The incorporation procedure is similar to that of any other company incorporation in BIIP.

     

    ]]>
    Tue, 28 Jan 2020 17:03:00 GMT
    <![CDATA[Freezones Bahrain International Airport]]> 1. What law established this free zone?

    Bahrain International Airport is not actually a Free Zone, although it is sometimes mistakenly referred to as one. The Airport Zone is governed by the Sovereign wealth fund of the nation, Mumtalakat.

    2. What are the main internal regulations governing this free zone?

    As the BIA is not a Free Zone, the regulations governing it are the same as any ordinary area of the nation. There are no specific internal regulations governing companies formed in it.

    3. Does this free zone has reciprocal arrangements with other Free Zones?

    No, there are no reciprocal agreements with other free zones.

    4. What key areas of local legislation must a business operating in this free zone still comply

    with? What are the most important examples of how this affects operations?

    Considering the nature of this area and the fact it is not a true free zone, the external regulations of the country are the primary regulations which must be abided by in the BIA. Some of the key laws are:

    • The Commercial Companies Law, Bahrain Decree-Law No. 21/2001.
    • The Labour Law issued in Bahrain Legislative Decree No. 36/2012.
    • The GCC Common Customs Law of 2001.

    5. What key agencies do businesses operating in this free zone need to register with or be aware

    of?

    The crucial agencies to register with and obtain approval from depend on the businesses activities. Some of the key agencies are:

    • Foreign Affairs Ministry;
    • Industry, Commerce and Tourism Ministry.

    However this list is not exhaustive.

    6. How does a company set up in this Free Zone?

    A commercial company is set up by:

    • Completing an electronic application and submitting it to the relevant authorities in the MOICT to obtain approvals;
    • Paying any municipal fees;
    • Obtaining any external approvals;
    • Documenting the Articles of Incorporation and Association;
    • Publishing in the Official Gazette.

    7. What features go companies set up in this Free Zone have?

    As this is not a free zone company, there are no specific special features.

    8. What can companies set up in this Free Zone do?

    The key economic areas companies can have as their business activities are:

    • Retail;
    • Cargo Facilities;
    • Advertising.

    9. What can companies set up in this Free Zone not do?

    Anything not related to the activities mentioned cannot be done in this airport zone. However, offices for companies as well as warehouses can be obtained for numerous purposes.

    10. What types of business are allowed to operate in this Free Zone?

    The key economic areas companies can have as their business activities are:

    • Retail;
    • Cargo Facilities;
    • Advertising.

    11. What inheritance laws apply in this free zone?

    Bahrain is an Islamic nation and so the key regulation regarding inheritance is Islamic Sharia law apply.

    12. What taxation applies?

    There is no corporation tax in Bahrain at this point in time except in the oil and gas industry. There is a municipality tax of 10% on commercial properties and VAT has applied since 1 January 2019.

    13. What accounting and auditing rules do businesses operating in this free zone need to

    adhere to?

    The regulation concerning Bahrain's commercial companies and their financing and auditing is Bahrain Decree-Law No. 21/2001 as amended by Bahrain Decree-Law No. 50/2014.

    14. Where do businesses operating in the free zone generally locate their bank accounts?

    As the BIA is not a Free Zone, the corporate bank account has to be opened on the mainland as any other ordinary corporate bank account.

    15. Are there any specific rules governing when the moveable property is removed from the free

    zone area or transferred into the free zone area from another jurisdiction?

    Bahrain Airport is not a free zone and so when it comes to moveable property, the regulations which apply onshore apply in BIA.

    16. Are any specific licenses required to operate as a particular type of company in this free

    zone?

    Licences are the same as those found onshore and are dependent on the business activities being applied for and performed.

    17. Is there any specific ongoing regulation or monitoring firms operating as particular types of

    companies by this free zone authority?

    Bahrain Airport Zone is managed and run by Mumtalakat, the nation's sovereign wealth fund. Companies are also monitored by the Labour Ministry for employee-related matters and other ministries depending on the specific business activities.

    18. How are disputes settled in this free zone?

    There are a few methods to settle disputes. The Bahrain Chamber for Dispute Resolution is one entity. It was established by Bahrain Decree-Law No. 30/2009 and is an independent body responsible for settling corporate and Government disputes.

    However, the types of disputes covered include arbitration and mediation rather than litigation.

    The Bahrain Courts, which are made up of the civil law courts and the Sharia law courts handle litigation matters.

    19. How are disputes between onshore companies and companies in this free zone settled?

    This airport zone is not a free zone and so disputes are handled no differently.

    20. What are the main rights and duties of an employer and employee working in this free zone?

    The Labour Law contained in Bahrain Decree-Law No. 36/2012 covers labour matters including employer and employee duties.

    The duties covered include working hours, end of service benefits and employee leave

    21. How are employment disputes between employers and employees working in this free zone

    settled?

    There are a few methods to settle disputes. The Bahrain Chamber for Dispute Resolution is one entity. It was established by Bahrain Decree-Law No. 30/2009 and is an independent body responsible for settling corporate and Government disputes.

    However, the types of disputes covered include arbitration and mediation rather than litigation.

    The Bahrain Courts, which are made up of the civil law courts and the Sharia law courts handle litigation

    22. What entry qualifications and permits are required for staff working in this free zone, and

    how are employees registered with the authorities?

    All requirements from employees are mentioned in the Bahrain Labour Law, Bahrain Decree-Law No. 36/2012. Requirements depends on the position of the employees as well as what is stated in their contracts concerning their benefits.

    Employees must be registered by the company with the Labour and Social Affairs Ministry in order for them to receive a Certificate of Registration. An additional registration must be made with the General Organisation of Social Insurance and regular fees must be paid. For Bahraini nationals, these relate to pension as well as work related injuries, although for nonnationals, it only relates to work injuries. These registrations are performed through the appropriate online portals.

    23. How are staff working within this Free Zone registered with the authorities?

    All requirements from employees are mentioned in the Bahrain Labour Law, Bahrain Decree-Law No. 36/2012. Requirements depends on the position of the employees as well as what is stated in their contracts concerning their benefits.

    Employees must be registered by the company with the Labour and Social Affairs Ministry in order for them to receive a Certificate of Registration. An additional registration must be made with the General Organisation of Social Insurance and regular fees must be paid. For Bahraini nationals, these relate to pension as well as work related injuries, although for nonnationals, it only relates to work injuries. These registrations are performed through the appropriate online portals.

    24. What rules govern the remuneration and minimum benefits of staff working in this Free Zone?

    The Bahrain Labour Law, Bahrain Decree-Law No. 36/2012 concerns all labour matters including minimum benefits and remuneration. Chapter 10 covers employee wages.

    25. What rules govern the working time and leave of staff working in this Free Zone?

    The Labour Law, Bahrain Decree-Law No. 36/2012 covers working times and leave for staff members. Article 82 of Bahrain Decree-Law No. 36/2012 for example covers sick leave and Chapter 11 of Bahrain Decree-Law No. 36/2012 covers working hours.

    26. What are the main features of a property lease in this free zone, and what are the key

    restrictions when leasing a property?

    Office space as well as warehouses are available in the zone. The area is fairly significant, although land itself is not available to purchase. Only pre-made spaces are available.

    27. Is it possible to apply for a building permit in this free zone? How is this done, and what

    steps are required?

    Building permits are not available in the airport zone.

    28. What environmental requirements must construction companies building in this free zone

    consider, e.g. form of building, landscaping or building height?

    Construction companies cannot form and build in the airport zone.

    29. What are the key restrictions when leasing a property in this Free Zone?

    Office spaces and warehouses related to the permitted activities can be leased.

    30. What are the rules governing the use of utilities in this free zone?

    Utility related regulations do not concern this airport zone as it is not considered a free zone.

    31. How do retail premises establish themselves in this Free Zone?

    Retail premises must obtain a license for their particular activity and can then obtain office space or warehouse in the airport zone.

    32. Is it possible for hotels and retail establishments to operate in this free zone- how do they

    establish themselves?

    Retail premises must obtain a license for their particular activity and can then obtain office space or warehouse in the airport zone.

     

    ]]>
    Tue, 28 Jan 2020 15:24:00 GMT
    <![CDATA[Tax Regulation in the GCC]]> Guide on Tax Regulation in the GCC

    Introduction:

    Gulf co-operation council is the abbreviated form of GCC. It came into force in 1981.   It is the union of all Arab state except Iraq and UAE is one of its member states. Saudi Arabia has head first a proposal to make the GCC into Gulf union for the betterment of its administrative functions. There are six gulf countries Bahrain, Oman, Kuwait, Qatar, Saudi Arabia and UAE are the main GCC countries. The purpose of GCC is to maintain unity among its member countries. The main objectives for the formation of GCC countries are for the common currency, common market and customs union which was set forth by the GCC supreme council. And the other objectives include formulating rules in the field of trade, finance, legislation. scientific progress in the field of agriculture, mining, and encouraging the private sector and bonding with the people.  The economic growth of the GCC countries depends  on its vast petroleum, oil and natural gas resources , but at present situation many countries have found out its own oil and natural resources hence its effect the economic development of Gulf countries as a result of it the gulf countries introduced the lowest rate tax of 5 per cent in order make a stable economic development. A common market system was established for the nice movement of goods and services in the GCC countries, it provides equality for the GCC citizens to work in all fields mainly public and private sector but the disadvantage is some bar in the movement of goods and services.  Coordination of taxation system, accounting and civil legislation is still in progress.

    Tax:

    Tax is a compulsory payment of financial charge which is imposed on individual or entity by the governmental organization in order to develop various public expenditure. Non- payment of tax is punishable by the law. The State can impose civil penalties or criminal penalties for the non- payment of tax fully.  Taxes are of two types Direct tax and Indirect tax.

    Tax in GCC:

    It was in the year of 2015 the oil and petroleum price of Gulf countries came to its much lowest price. So, in order to meet future needs, the GCC countries representative agreed to sing the VAT treaty. It was in the year 2016 they entered into this agreement. it was not the oil and gas which made the economic growth of the GCC countries disappeared completely, the true fact is that many countries started using non- renewable resources.  For example, the developed countries like the United States they started producing their own oil and petroleum hence it becomes a tough competition for the Gulf countries because they were the sole distributors of oil and gas in the whole world. By keeping it in mind the gulf countries planned for the future and contributed money for the future growth of their nation. But it was in the year 2015 they faced a budget deficit. So, to overcome this deficit they realized the need for a new source of income and they thought about tax. Hence in the year 2016, each representative of the GCC countries signed the VAT agreement.  The VAT is value added tax by entering into this agreement the GCC countries started imposing VAT at a rate of 5 per cent on some goods and services.  Health and education are exempted from the VAT. Now people in the GCC need to pay a VAT of 5 % per cent on food, cars and other entertainments.

    In Saudi Arabia and in UAE the VAT system has started smoothly these two countries had only met the deadline of VAT treaty in the year 2018 and other member countries are still on the run. Bahrain is the only GCC country who had not introduced the VAT.  Even though the implementation of VAT has been done smoothly in two countries but in the business, many problems are arising as they are confused that how to apply the VAT system in goods and services mainly in the Free Trade Zone area of these countries.

    Following are the types of taxes in GCC: 

    Corporate Tax: It is imposed on the profit of the entities. UAE corporate tax is levied on oil companies and foreign banks only. As per the GCC rules, residents are not subject to corporate or withholding tax.

    Withholding Tax: This tax is imposed on any income. It is imposed when the income is transfer to another country. Withholding tax applies to corporate income and the income of private persons.

    Zakat: Zakat is an Islamic tax, which is made compulsory to every abled individual to serve the needy ones in Islam.

    VAT: Value Added Tax is a tax imposed on the supply of goods and services. The GCC countries have agreed to implement VAT at a rate of five per cent. VAT provides UAE with a new source of income and it also provides a high quality of public service. The GCC VAT Agreement lays down a broad principle that needs to be followed by all the GCC countries in their VAT laws providing flexibility in certain matters.  Every GCC country will be having its own VAT legislation. Value added tax came into force in UAE on the 1st of January 2018. The Implication of VAT on Individuals: VAT general consumption tax is mainly levied on the transaction of goods and services. As a result, the cost of living of people will increase slightly, but this will depend on an individual's lifestyle.

    The Implication of VAT on business: Businesses will be responsible for all their business transactions and auditing. Mainly documenting their business income, costs and associated VAT charges.  All registered businesses and traders will levy VAT from all of their customers and also incur it from the goods and services which they buy from the supplying agents.

    Excise Tax: it is an indirect tax imposed on goods which are harmful to human life and property and also to the environment at large. for preventing the use of these harmful commodities, the GCC countries agreed to enact the excise tax by signing the excise tax agreement.

    Customs Duty: GCC countries have an amalgamation of customs duty rules. whenever any goods are transported into the GCC countries for the first time they impose customs duty on the goods. The customs duty of imported goods is at the rate of 5 per cent of the invoice value. Some goods may be imposed with the highest rate and some will be totally exempted.

    Stamp Duty: It is levied on documents such as legal documents. it is imposed on the transfer or registration of real estate in Oman and also in Bahrain. In the UAE whenever ownership of land or shares of a company is transferred a registration fee is levied on both.

    Sectors in VAT Implementation

    • Real estate and construction

    • Tourism

    • Oil and gas

    Real estate and construction industry are a huge importance for the GCC countries because it provides many benefits like supporting a large number of livelihoods, providing residential places to live which is one source of income for the GCC countries and it also develops a region. By introducing the VAT by GCC countries it does not create any problem to the real estate and the construction fields future project.  It's a positive approach by the government to make the real estate and construction field to contribute to the welfare of the state. Because a large sum of money is coming from this field. Supply of real estate is taxable at a standard rate in G C C.

     The Tourism industry contributes a huge sum to the Gulf economy and it provides many opportunities for individual tour operators in the G C C.  But the main challenge which they face is how to implement VAT. This industry is an amalgamation of various sectors which includes airlines, tour operators, travel agents, accommodation and so on, so by the introduction of VAT in this industry will affect each by one or the other way.

    The oil sector plays a very important role in the Gulf countries. Many multinational oil and gas companies are in the countries. Business in the sector includes international, national, and other oil companies.  VAT implementation will create a huge impact on this industry. There is complexity in the field of oil and gas industry and by the introduction of VAT in the G C C need to be given consideration in businesses.  Each and every industry in the Gulf countries is one way or the other is affected by the implementation of VAT and the more affected field is the tourism industry because it comprises various sections of employment.

     

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    Thu, 27 Jun 2019 09:41:00 GMT
    <![CDATA[A Guide Information Security ]]> A Guide to Information Security and Data Protection Laws in GCC Countries

    New challenges have arisen with the technological development along with the social and economic globalization.  It can be said that our entire personal data is being stored in the gadgets we use. Internet today has brought millions of unsecured computer networks into continuous communications with other networks. With the advent of information being stored electronically, more and more people use online banking and shopping services, social media, location-based services, mobile services for their everyday activities. This results in the collection of an enormous amount of digital trail of personal data of these users which are left all over the internet. The security of each computer's information depends upon the level of security of other computers connected to it.

    In the recent years, with the realization of the importance of Information Security to both national security and the corporate world, awareness of the necessity to improve Information Security has grown and is ever increasing.

    In this guide, we will address the following questions regarding Information Security:

  • What is Information Security?
  • Is there a need for Information Security?
  • What is the relevant legislation for information security in UAE and other GCC countries?
  • What are information security agreements/ clauses and what needs to be added to these clauses/agreements?
  • What is Information Security?

     In the earlier stages, information security was a simple process composed of predominantly physical security of documents and its classification.  The primary threat faced by companies were theft of equipment, product espionage of the systems and sabotage. One of the earlier documented cases of security problems occurred in early 1960, where the systems administrator was working on the Message of the Day and another administrator was editing the password file, when a software glitch mixed the two files, causing the entire password file to be printed in every output file.

    With the growing concern about States engaged information warfare and the possibility that business and personal information systems being threatened if left unprotected has made Information Security (InfoSec) emerge as a method to ensure the confidentiality of the available data and also the availability of technology enabling the delivery and processing of that data. In simple terms, it can be explained as the protection of information and systems from unauthorized access, disclosure, alteration, destruction or disruption.

    It can be said that the main objectives of information security are:

    • Confidentiality

    Which refers to the preventing unauthorized access or disclosure of information and providing its protection. Confidentiality means ensuring that the individuals authorized are able to access the information and those who are not authorized are prevented.

    • Integrity

    It is the protection of information from unauthorized alteration or destruction and ensuring that the information and its systems are uncorrupted, accurate, and complete.

    • Availability

    Means to ensure that the information is available in a timely manner and there is reliable access to and use of the information and the information systems, at the same time, protect the information and information systems from unauthorized disruption

    Why do we need information security?

    A fundamental aspect for the success of our economy and society is data, and the protection of the same from cybercriminals has become the need of the hour in today's cyber world.

    Advanced Persistent Threat (ADT) is a well-resourced systematic attack perpetrated by competing states and cyber criminals who aim at state secrets, corporate espionage, and theft of sensitive data.  ADT has added to the breaches of millions of the individual personal, health and financial information, making it essential for institutions that collect and use personal data to develop and sustain a comprehensive security system in order to protect itself against such attacks.

    For the security of individuals and the survival of enterprises, it is paramount to secure information resources and protect personal information from being exposed to groups or individuals with malicious intentions. While businesses struggle to survive amidst these critical issues surrounding information security and the increased risk of serious data breaches, governments are also changing their data protection laws so as to adapt and secure itself against these new risks that arise every day.

    When companies entrust business partners and vendors with the company's confidential information, the company is also entrusting them with all control of the security measures for the company's data. Such a trust cannot be blind.

    Examples of InfoSec Breaches:

    • British Airway's Customer Data Hack 2018

    The British Airways recently announced that over 380,000 payment card details and personal data of customers were compromised following a 15-day hack attack from 21st of August 2018 to 5th September 2018 and warning the customers to contact their banks immediately in order to secure the same.

    • The Bank Heist of 2013

    In 2013, the world witnessed one of the biggest bank heists of the century. A team of cybercriminals stole $45 Million (AED 165 Million) from RAKBANK and Bank of Muscat by accessing the computers of their credit card processors. Once they gained access, they increased the available balance and withdrawal limits on prepaid MasterCards issued by the banks. They then distributed these counterfeit cards to "cashers" around the world enabling them to siphon millions of dollars from ATMs. This included over 36,000 transactions which were committed in a matter of 10 hours. 

    • Cryptowall Ransomeware Case

    Cryptowall is a file-encrypting ransomware program which was used by its creators to make over $1 million by infecting over 600,000 computer systems in 2014. Once gaining access into the computers, they encrypted the sensitive information files which were only decrypted when the owners paid the ransom. Even though Cryptowall had been spreading since 2013, it had been overshadowed by Cryptolocker, which is another ransomware program. When the threat of Cryptolocker was mitigated, the makers of Cryptowall stole the data by accessing computers through various tactics including spam emails with malicious links and attachments, drive-by-download attack for infected sites with exploit kits and through installation through other malware programs already installed and running on compromised computers.

     

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    Thu, 11 Apr 2019 13:37:00 GMT
    <![CDATA[EPC and Design-Build delivery]]> Differences between EPC and Design-Build delivery- English Law compared with GCC

    Any manufacturing company primarily delves on the basics of production efficiency, innovation, cost management and time to market which are the critical factors for achieving a competitive advantage. The company needs to achieve its business strategy, and thus a brief mode of delivery is required for delivering capital projects. When a strategically best method of delivery is chosen for capital construction projects, the companies can guarantee successful business goals anticipated for the project.

    The economy sustains on various project delivery methods that are available on hand for them, but the problematic part arises about choosing the appropriate and strategized method for the same. It must be dependent on various factors ranging from budgets, schedule, cash flows, complexity in the projects, risk mitigation and hedging, the team composition and the goals designated for the project.

    The generational and traditional way of doing it is by retaining the already available engineering and project management resources. Nevertheless, owing to the specific market-based issues related to monetary and competition, several units tend to decrease their in-house capacities and in turn, go for a selection of specific project delivery method.

    Primarily, a project delivery method is a configuration of roles, relationships, responsibilities, and sequences on a project. It is a strategy utilized by an agent or the proprietor which helps in the corporation and financing design, construction, activities and support administrations for a structure or office by entering into agreements with at least one substances or gatherings. It is essential to choose a delivery method that best meets the unique needs of each owner and their project.

    The fundamental decisions that an owner must take into account are that what kind sort of task conveyance strategy to utilize, what will be the obtainment technique and what will the contract be like. The Project delivery process generally involves an owner, designer and a builder.

    The conveyance strategy might be a combination or hybrid of numerous conveyance techniques. Each delivery techniques builds up various connections among the parties included and, in this way, extraordinary dimensions of hazard.

    Project Delivery Methods:

    The Engineer-Procure-Construct (EPC)

    It is a project delivery method that has risen as a favored choice for some industrial entities and is beginning to pick up support in the manufacturing business. With an EPC contract, the proprietor has a solitary purpose of contact for the venture. Under the model, the EPC firm handles the design plan, obtains all hardware and development materials, and construction services for turnkey conveyance of the office, for the most part at a single amount cost.

    The EPC procedure begins with a reconstruction effort that includes some first-hand planning and designing to characterize the scope, timeline, and expenses of the venture. Approval is regularly overseen specifically by the customer or through a different validation firm to guarantee this basic action is conveyed effectively.

    The EPC firm develops project scope and estimates. The timeline for the project and the budgeting are known before the task enters detail structure or development stages. All plan and development degree and spending dangers are passed to the contractual worker.

    The EPC model adjusts colleagues for ideal venture execution. The EPC display decreases venture dangers for the proprietor, conveys unsurprising outcomes, and augments the adequacy of capital arranging.

    Design-Build

    As of years, design-build has been gaining momentum as a favored method. As an increasingly clear conveyance strategy for proprietors, it additionally limits risks. A conceptual plan for a project is developed by an owner who then solicits bids from a joint venture of architects and engineers and builders for the design and construction of the project.

    The DB project delivery model is appropriate for assembling customers that require quick tract venture conveyance and need a single point of contact. The temporary worker and originators are enlisted by the proprietor to convey a total task.

    The owner selects a design-build firm from pre-qualified companies that have submitted designs and prices based on the project requirements. The DB firms retain their architects, engineers, and other consultants. The owner provides the user requirement specifications, materials of construction, and the specifications for the manufacturing equipment. The Design-build contracts are typically lump sum and based on the design that accurately meets the owner's specifications.

    It is employed to decrease the project delivery schedule. DB is typically practiced for architecturally-driven designs. This concept typically occurs in improved communication among the design team and a larger degree of responsibility. While this is a complicated delivery method, the compressed schedule and value engineering approach often result in cost savings for the owner.

    Design-Bid-Build

    Design-bid-build relates to the subsequent phases of this project delivery method, which sometimes is called "traditional." The contract documents are developed by the owner with an architect or an engineer which comprises of a various set of blueprints and a detailed specification.

    Construction Management at Risk

    At the point when proprietors need a characterized culmination date and value, the development the executives in danger may be the favored task conveyance technique. Amid the venture plan, a development administrator goes about as an expert to the proprietor.

    Multi-Prime

    In multi-prime, the undertaking is separated into three phases– design, engineering, and construction. While actualizing MP, the proprietor frames separate contracts with the experts heading the different phases of the undertaking. Every one of these classes of contractual workers may direct crafted by subcontractors, for example, a general contractor who manages carpenters and framers.

    Integrated Project Delivery

    Coordinated venture conveyance is the best in class conveyance strategy in development with an accentuation on cooperation and joint effort. While actualizing IPD, the essential objective of the incorporated strategy is to spread obligation, duty, and hazard (and rewards) among the partners in a construction job.

    Comparing English Law with GCC

    The International Federation for Consulting Engineers (Fédération Internationale des Ingénieurs-Conseils) (FIDIC) is commonly employed in the UK as well as in the GCC. FIDIC is commonly used on UK projects, particularly the EPC/Turnkey Contract (The Silver Book) and is often used in process plant/complex engineering projects in the United Kingdom.

    The International Federation of Consulting Engineers (FIDIC), Joint Contracts Tribunal (JCT) and New Engineering Contract (NEC) contract suites have specific design and build options that can be modified to support the type of procurement entirely or by way of partial design liability being passed to contractors. The construction industry in the GCC adopts and follows international best practices for construction contracts governed by GCC law or implemented in the GCC. These contracts are heavily modeled after FIDIC forms of contracts.

    Also, the lump-sum turnkey contract is the dominant procurement model in the GCC market. Whether upstream or downstream, the vast majority of the GCC's oil and gas sector projects are delivered through engineering, procurement, and construction (EPC) contracts.

    Petrofac was recently awarded the $580m EPC contract for a GCC project. Petrofac's Middle East portfolio includes the Upper Zakum oil field project in the UAE, the Sohar refinery improvement project in Oman, and the Petro Rabigh Phase II project in Saudi Arabia.

    Design-and-build is touted as the contracting technique for the future, killing debate and hurrying the plan and development process. It is relatively new in the Middle East, but as we see more of this method, the roles and responsibility of the contractor will become more evident. The client needs to ensure the right contractor is used, with enough experience and resources to enable them to complete the project to the quality required. The building criteria must be very clearly laid out ahead of appointing the contractor, as the client may lose design control once a fee has been agreed upon.

    Design and build contracts have been utilized effectively for quite a few years outside of the Middle East yet were not ordinarily drilled in the Middle East until 2012.  whereas, 2013 and 2014 have seen employers from different projects adopting this procurement route. Realizing the advantages of this procurement route, more and more employers are adopting Design and Build for their projects.

    Already predominant in Europe and many parts of Asia, it eliminates the separate responsibilities for the designer and the contractor, since the designer is a partner, a subcontractor or an employee of the contractor.

    With the designer getting imposed with the risk, more complex projects soon became attractive in the UK, and the companies were looking for a one-stop shop approach. The Company may have avoided the design development risk, but still retains the risk of delay for the other reasons, so the potential disputes remain.

    In the case of Midland Expressway vs. Carillion Construction, the M6 toll road construction was based on a design-build contract, where the entire responsibility for the design was given to the contractor. Disputes regarding claims for payments and share of the discounts to be received were ascended followed by adjudication and then litigations.

    This judgment started with an intrigued tone, and the courts held that there was no doubt at considerable expense to the parties involved, thereby design and build does not prevent claims arising. It does not prevent contractors from making claims for extra time and money where there is a lag.

    The company may think that he is setting all the design jeopardy on the contractor but, if significant modifications are notified during construction (which is the case for many projects), this risk stays with the organization.

    Differences between EPC and Design-Build Delivery

    EPC and Design-Build Delivery have both existed as mainstream delivery methods for decades. In both cases, the partner has a point of contact. In both cases, the company is responsible for the design, and the contractor takes on more risk than a traditional design-bid-build delivery. However, several essential differences differentiate the two:

    Active Participant:

    An EPC project results in a turnkey facility. The EPC contractor heads the working of the project facility.

    A design-build contract finishes off comparatively to configuration offer form contracts, with the proprietor and its development director or fashioner playing a functioning job in punching out the office.

    The design-builder is held by the proprietor from the get-go in the life of the undertaking and, now and again, before the structure has been created by any means.

    Design-build is used to limit dangers for the venture proprietor and to decrease the conveyance plan by covering the structure stage and development period of an undertaking."DB with its single point duty conveys the clearest legally binding solutions for the customers in light of the fact that the DB contractual worker will be in charge of the majority of the work on the undertaking, paying little heed to the idea of the blame."

    It answers the client's wishes for a single point of responsibility in an attempt to reduce risks and overall costs.

    These contractors are usually handed little more than performance requirements varying, whereas most design-build configuration assemble contracts give probably some plan detail in the connecting reports.

    EPC equivalent of the "structure help" or "quick track" plan construct forms is not available.By and by, this mirrors the proprietor's increasingly negligible contribution in the EPC configuration process.

    There is no EPC likeness the "structure help" or "quick track" plan construct forms. By and by, this mirrors the proprietor's progressively negligible association in the EPC configuration process.

    Risk-taking:

    Most contracts transfer far more risk to the contractor in EPC. The risk is not shared between the owner and the design-builder, but just the contractor has to face the responsibilities and the liabilities.

    Design-build contracts will, in general, take either a customary plan offer form way to deal with questions like obscure site conditions or to share that chance between the proprietor and the structure manufacturer. In contrast, it is not uncommon for EPC contracts to shift these risks entirely to the EPC contractor.

    Project Delivery Processes:

    The delivery of the project via Design-build is in two phases with:

  • Phase I including budgeting and development and pre-construction services and the negotiation of the contract price for Phase II; and
  • Phase II including final design, construction, and commissioning.
  • The EPC project process involves

  • Initiating the Project
  • Preparations like setting up of the project organization and Procurement procedure
  • Phase I Project Development
  • Phase II Project Implementation
  • Phase III Project Follow up and (f) Decision Making.
  • Understanding the differences between these two seem quite similar design processes is a crucial step when assessing which delivery system is right for the project.

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    Sat, 23 Mar 2019 14:00:00 GMT
    <![CDATA[Counter-Terrorism Efforts]]> A Global Purview of Counter-Terrorism Efforts

    With nearly 41% of all terrorist attacks resulting in casualty, and a dramatic increase in public targeted incidents, governing bodies representing both domestic and international interests alike have invested countless resources into better understanding why terrorism occurs, and how legislatively, it can be stopped. The result has led to an intriguing conceptualization of terrorism commencement theory, international convention prohibitions, and domestic statute adoptions.

    Understanding Terrorism: Scope, Scale, and Premeditative Factors Guiding Legislative Enactment

    Statistically, post-1990, approximately 100 to 200 international terrorist attacks have occurred each year. Of this number, 40% of offenses were directly targeted against U.S. interests. Heinous acts of terrorism such as the U.S. 9/11 Twin Towers attack and 2007 London Bombing have demonstrated that atrocities stemming from terrorism extend beyond the loss of life or injury. Rather, both domestic and international acts of terrorism hold the significant capacity to adversely impact socio-political and economic sectors. Empirical evidence has suggested that terrorism, directly and indirectly, results in: infrastructural damage, unemployment, weakened commerce, an elevated need for security, counterterrorism budgeting, and escalated insurance premiums. Globally, the vast majority of attacks have occurred within the Middle East and Europe, however, the highest rates of mortality have occurred within Africa, Asia, and the Middle East.

    To fully comprehend why terrorism has become an increasingly widespread phenomenon within the last half-century, one must first grasp what constitutes terrorism, and how domestic and international acts of terrorism differentiate. For an atrocity to be classified as an act of "terrorism," intentions must target "…premeditated political violence against civilians with the objective of maximizing media exposure to the act and, ultimately, to the terror group and/or to its cause. Political violence is achieved when either an individual (independent of the state) or the state itself commits assault with the purpose of obtaining a political goal. For the scope of this article, two primary forms of terrorism will be discussed: domestic and international incidents.

    • Domestic: Domestic terrorist attacks occur when a perpetrator commits an act of political violence within their own nation's jurisdiction. Consequences of a domestic attack are intended only to impact the venue country (whether that be its structural institutions, citizens, or policies). Within a domestic attack, the offenders, their victims, and the overarching goal exist within one territorial jurisdiction.
    • International: Transnational terrorist attacks engage offenders, victims, and targets of multiple nations. 

    There is significant debate existing between international governing bodies as to why acts of terrorism are committed. Despite a dramatic surge in research funding, the enactment of fifteen international counter-terrorism conventions, and enforcement of domestic counter-terrorism legislation worldwide (such as the UK Counter-terrorism and Security Act 2015), conclusions have remained predominately elusive. Lacking unanimous agreement, three theories have been generally accepted by members of the international community. At the legislative level, understanding these hypotheses has been absolutely essential for constructing laws aimed at curtailing terrorism. Succinctly, research has suggested:

    • Domestic political instability and international terrorism are intrinsically connected.  This perspective, coined the Escalation Effect, proposes: "…domestic political instability drives international terrorism…[in that] politically unstable countries offer propitious conditions" for civil war outbreak, guerrilla warfare, sophisticated "terror" training, and the accumulation of terrorist human capital.
    • Terrorism is most likely to arise out of territories with meager political development and a deteriorated economy.
    • International terrorism commences as the result of a "weak" state. This concept is referred to as the "failed state hypothesis." Weakness is determined by evaluating the social, economic, and political welfare of a nation.  

    Together, these speculations have helped guide the evolution of national and international conventions, resolutions, acts, and codes governing anti-terrorism legislation.

    Evaluating the Aims of Anti-Terrorism Legislation

    There are two central focal points specific to preventative counter-terrorism legislative efforts internationally: collective security and human rights. On the international scale, the United Nations Security Council has enacted a variety of resolutions since 21 January 1992 to combat and condemn global acts of terrorism. According to Article 24 of the UN Charter, the function of the Security Council is to maintain international peace and security amongst member states. In regards to counter-terrorism, the Council is predominantly concerned with managing collective security. The UN assessment of terrorist insurgency began in the mid-1960s through the formation of several multilateral treaties, which included the Tokyo Convention of 1963 and the Montreal Convention of 1971. These conventions "…categorized the main forms of terrorist acts as criminal…[defining] crimes and obligated state parties to prosecute or extradite suspected offenders.] Although UN treaties such as these serve punitive and deterrent roles, their effectiveness at mitigating incidents of terrorism is highly controversial. As tragedies resulting from terrorist acts have demonstrated, a discrepancy often exists between a state's claim of procedural duty follow-through and reality.  The 1988 Lockerbie tragedy demonstrates just this. Although the trial of the two Lockerbie bombing suspects was "achieved partly through the intercession of the [UN] Security Council, utilizing its collective security powers to deal with a past act of terrorism…[it was] an indication of future behavior by Libya in supporting terrorism." Following this realization, and upon criticism of targeted sanctions, the UN Security Council declared that states not only have a duty to satisfy collective security obligations but also, adhere to their duties of protecting human rights.  The General Assembly's Global Counter-Terrorism Strategy adopted by UN Member states in 2006 affirmed this declaration. The Strategy made clear that "…states must ensure that any measures taken to combat terrorism complies with their obligations under international law, particularly human rights law and international humanitarian law.

    International Anti-Terrorism Conventions

    From an international purview, all counter-terrorism conventions are enacted under the UN. Conventions worth analyzing in this article include:

    • 1997 International Convention for the Suppression of Terrorist Bombings (Ratified by 169 states)

    Through this convention, the UN confronts the increasingly widespread prevalence of explosives and other lethal devices used in terrorist attacks. Noting foregoing provisions did not directly prohibit such incidents, Article 2 is designed to outline committable offenses under this topic. The article states, "Any person commits an offense within the meaning of this Convention if that person unlawfully and intentionally delivers, places, discharges or detonates an explosive or other lethal device in, into or against a place of public use, a State or government facility, a public transportation system or an infrastructure facility...." Under the 1997 Convention, explosive and lethal devices were defined as weaponry or equipment holding the capacity to induce severe material/economic damage, kill, or cause bodily harm. Article 2 also asserts guilt if an individual acts as an accomplice in or directs others to commit the act of terrorism. The Convention, in Article 4 requires State Parties to implement measures "to establish criminal offenses under its domestic law the offenses set forth in article 2…[and] To make those offenses punishable by appropriate penalties which take into account the grave nature of those offenses." As with all of the anti-terrorism conventions set forth by the UN, the jurisdiction of an offense is dependent on three conditions. A State may claim authority over a terrorist attack if: it takes place in the Member states' territory, a flying vessel is registered under the States' laws, or the offender is a State national. It is also worth noting that the Convention excludes (in Article 19) "…activities of armed forces during an armed conflict…" from governance as international humanitarian law supervises activities executed by armed force.

    • 1999 International Convention for the Suppression of the Financing of Terrorism (Ratified by 187 states)

    Noting that financial terrorism had evolved into a grave matter of concern for the international community and that a vast majority of international terrorism acts were committed due to financial backing assistance, the 1999 Convention stressed the need to devise preventative measures to eradicate the financing of terrorism. Similar in design to the previous convention, Article 2 outlines committable offenses. The Article specifies an offense is committed under the Convention if an individual "…directly or indirectly, unlawfully and wilfully, provides or collects funds with the intention that they should be used or in the knowledge that they are to be used... [to] cause death or serious bodily injury to a civilian…." The Convention is non-applicable (under Article 3) to offenses performed by nationals of the State in which the act occurred, or when an offense occurs "within a single State."  The Convention also prescribes ratifying states to adopt measures of enforcement/deferral. A State Party is strongly advised (where necessary) to institute criminal offenses and proportionate penalties for the actions prohibited in Article 2. 

    • 2010 Protocol Supplementary to the Convention for the Suppression of Unlawful Seizure of Aircraft (Ratified by 22 states)

    Created as a supplement to the 1970 Convention for the Suppression of Unlawful Seizure of Aircraft, the 2010 Protocol amended many previous articles of the Convention. Discussed in the Protocol's preamble, the international community was "deeply concerned" with the intensification of civil aviation offenses. The intended aim of creating this Protocol was to subdue future "seizure or exercise of control of aircraft." Article 2 of the Protocol replaced Article 1 of the Convention. Under the amendment, "Any person commits an offense if that person unlawfully and intentionally seizes or exercises control of an aircraft in service by force…or by coercion…." Additionally, the threat of aircraft seizure, the attempt of the offense, serving as an accomplice, or directing others to commit the offense is all punishable acts under the Protocol. Article 3 (replacing Article 2 of the Convention) classifies offenses as "punishable by severe penalties."

    • The 16th Proposed Comprehensive Convention on International Terrorism (Not yet ratified)

    Currently, the UN is in the negotiation phase of their 16th counter-terrorism convention. The Comprehensive Convention on International Terrorism is intended to ban all types of international terrorism, revoke terrorism fund access, ban terrorist access to arms, and deny terrorists refuge.  The proposal is undergoing a negotiation deadlock, as unclarity surrounds whether or not a state's armed forces or self-determination could classify as an act of terrorism.

    State Anti-Terrorism Legislation:

    From a national jurisdiction enforcement perspective, the United States and the United Kingdom have both enacted comprehensive legislative doctrine condemning acts of terrorism. Listed below are two of the countries' most all-embracive legislative attempts at counter-terrorism:

    UK Counter-Terrorism and Security Act (2015)

    Receiving Royal Assent 12 February 2015, the UK Counter-Terrorism and Security Act was passed by Parliament with the intent of: inhibiting terrorist activity resulting from entry to or exit from the United Kingdom, enhancing the monitoring of potential wrongdoers, fighting theory backing terrorism, granting law enforcement investigative authority to seize passports upon entry to the country, producing a Temporary Exclusion Order, modernizing aviation/maritime/rail border security, and guaranteeing the financing of terrorism is eradicated.

    18 U.S. Code Chapter 113-B

    U.S. Chapter 113-B provides numerous sections defining punishable crimes and penalties under the act of terrorism.

     Section 2332a. "Use of weapons of mass destruction," states that in the case of an offense committed in the United States against a U.S. national: any person (without lawful consent) who threatens to use or does use a weapon of mass destruction against a U.S. national, individual or property within U.S. territory, or property under ownership by the United States, "shall be imprisoned for any term of years or for life, and if death results, shall be punished by death…."

    Section 2332b. "Acts of terrorism transcending national boundaries," prohibits the following acts: killing, maiming, kidnapping, committing assault with a dangerous weapon, and causing (or conspiring to create) bodily injury through inflicting structural damage. Punishment ranges from 10 years to life in prison.

    Section 2332d. "Financial transactions," asserts any U.S. person with knowledge that another nation is supporting international terrorism, and "engages in a financial transaction with the government of that country, shall be fined under this title, imprisoned for not more than 10 years, or both."

    Section 2332f. "Bombings of places of public use, government facilities, public transportation systems, and infrastructure facilities," classifies chargeable actions as the delivery or detonation of an explosive in a public place, government facility, transportation system, or infrastructural structure. The detonation must be done with an intention of causing bodily harm, death, or damage. Additionally, individuals who conspire to commit an offense previously listed in this section will be charged. Penalties for such charges under this section are the same as the penalties under Section 2332a.

    ]]>
    Thu, 03 Jan 2019 13:46:00 GMT
    <![CDATA[Врачебная халатность в странах залива. ]]> Врачебная халатность в странах залива. 

    Виллес Дж.: «Халатность - это негативное слово. Это отсутствие заботы, умения и усердия, поскольку привлечение к выполнению работы всегда считалось обязанностью человека.»

     

    Вступление.

    Работа в медицине является одной из самых престижных и уважаемых профессий. Отношения между пациентом и врачом основаны на доверии и вере. Джордж Бернард Шоу сказал: «Мы не потеряли веру, но мы передали ее от Бога медицинской профессии». Жизнь и здоровье – те самые две вещи, которые мы все ценим больше всего.Именно врачи и медицинские работники обладают знаниями и навыками, что помогают держать наше здоровье в тонусе. За последние пару десятилетий мы стали свидетелями нового этапа глобализации и технического прогресса в различных сферах нашей жизни, и медицинская профессия не является исключением. К сожалению,профессия врача становится все более ориентированана на деньги, и по этой причине претензии в отношении врачебной халатности стали одной из самых больших проблемв  наши дни. Годами ранее врачебнаяхалатность считалась преступлением. 

     

    Врачебная халатность – это юридическое понятие, означающее предоставление небрежной или ненадлежащей медицинской помощи медицинским работником или медицинским учреждением, в результате которого здоровью больного или пациента нанесен ущерб. Она влечет за собой как гражданскую, так и уголовную ответственность. В гражданском процессе потерпевший может подать иск или жалобу на получение компенсации. В уголовном - потерпевший должен завести уголовное дело против врача. 

     

    Врачебная ошибка как правонарушение.

     

    Уинфилд: «Врачебная ошибка как гражданское правонарушение – это нарушение юридической обязанности, которое приводит к нежелательному ущербу ответчика в пользу истца.»

     

    Это такое действие, которое влечет за собой причинение вреда потерпевшему, и за которое суд в последствии возлагает ответственность. Врачи имеют юридическое обязательство перед пациентами, то есть они должны придерживаться необходимого свода правил по наблюдению и уходом за больным.

     

    Врачебная халатность может произойти на одном из следующих этапов оказания медицинской помощи:

    • На этапе обследования и диагностирования болезни или медицинской проблемы.
    • Во время оказания медицинской помощи, связанной с лечением болезни или медицинской проблемы.
    • На этапе наблюдения больного после оказания медицинской помощи.

     

    Врачебная халатность как профессиональное преступление.

     

    Профессиональные преступления в основном включают в себя те преступления, которые связаны с различными профессиями, например, медицинские, академические, религиозные, юридические и другие.  Профессиональные преступления, как правило, не так заметны, как любые другие, и поэтому в таких случаях преступники часто остаются незамеченным.Врачебнаяхалатность считается серьезной формой профессиональной преступности, которая подрывает честность и благородство профессии. Некоторые из преступлений, связанных с медицинской халатностью, включают в себя: разделение платы, установление цен, мошенническое выставление счетов, проведение ненужных операций,искаженное представление услуг и другие.В настоящее время большинство медицинских работников в первую очередь мотивированы именноматериальной выгодой.  Врачи и медицинские работники занимаются различными незаконными видами деятельности ради денежной прибыли. Пациенту может быть трудно поверить, что он может стать жертвой медицинского преступления и что врачи, которым он доверяет своездоровье на самом деле преступник.

     

     

    Обзор законодательствав области медицинской ответственностив ОАЭ: 

     

    За предыдущие два десятилетия мы наблюдали огромное расширение сектора здравоохранения в ОАЭ. Закон о медицинской ответственности в ОАЭ теперь предусматривает, что медицинские работники будут нести ответственность в случае, если они совершат какую-либо медицинскую ошибку с намерением получить коммерческую или другую выгоду. В Гражданском кодексе ОАЭ существует общая теория, согласно которой лицо, причинившее вред другим, будет нести ответственность за потерю или ущерб. Статья 389 Гражданского кодекса гласит: «Критерием для лица с отягчающими обстоятельствами, имеющего право на компенсацию, является то, что ущерб должен был быть причинен непосредственно в результате ошибки, и что он уже произошел или произойдет в будущем. Потенциальный ущерб  не подлежит обязательной компенсации пока он не был зафиксирован».

    ]]>
    Mon, 05 Nov 2018 12:00:00 GMT
    <![CDATA[Срочные меры и ускоренные разбирательства в арбитражном суде.]]> Срочные меры и ускоренные разбирательства в арбитражном суде.

    Вступление.

    На выполнение трудных задач практически всегда не хватает времени. Особенно,когда сроки уже подходят к концу, а цели еще не достигнуты – это еще больше разочаровывает. 

    Такие же ситуации встречаются в моменты судебных разбирательств. Дела, представленные в суд, часто бывают сложными, поскольку решение их  было невозможно за пределами суда. Тем не менее, сложные проблемы требуют глубокого анализа и, следовательно, часто встречается много доказательств, подлежащих вниманию. Таким образом, дело может продолжаться месяцами или  намного дольше. 

    Еще одной причиной этого могут быть судебные процессы, требующие наблюдения. Встречается много случаев, происходящих в одно и то же время,  на решение которых требуется ограниченное время до одних суток, а затем дни превращаются в недели и так далее.

    Однако есть случаи, которые требуют самого пристального внимания, но которые могут пострадать в результате длительных или отложенных разбирательств. На ум приходит вековая поговорка «Отложено правосудие - отказано в правосудии». Если задержка приведет к тому, что сторона не получит справедливый вердикт из-за истекшего срока, правосудие не будет считаться полностью завершенным. Это хорошо известная проблема, о которой знают правительственные органы и власти по всему миру. Однако, чтобы добиться изменений, административные правила стран подвергнутся регулировки для быстрого решения дел, которые требуют скорых решений. Для того, чтобы правовая система была наилучшей это изменение необходимо.

    Внимание суда драгоценно, а еговремя является одной из самых значительных ценностей. Потраченное впустую время суда равноценно потерянным деньгам. В связи  с этим, в разных странах были предприняты меры, чтобы упорядочить судебные процессы.

    Объединенные Арабсикие Эмираты (а точнее эмират Дубай,) недавно ввел в действие Закон об уголовном приказе № 1 от 2017 года, в котором вынесены 24-часовые двухступенчатые приговоры. Это позволит быстро разбираться с более простыми делами от начала до конца, а также даст больше времени на работу над более важными делами.

     

    Ускорение судебного разбирательства.

     

    Вышеупомянутый Закон об уголовном порядке был одним из первых шагов, предпринятых для облегчения судебных процессов. Одна из последних реализаций - это однодневный суд. Дела из конкретных категорий (малые или простые), могут быть изучены и завершены в течение 24 часов.

    Суд конкретно начнет рассматривать мелкие дела о проступках. Часто они предоставлены перед судом, который может проводить свое время, рассматривая сложные ситуации. Теперь дела будут рассматриваться по-другому. Предполагается, что сумма, которую можно сэкономить в результате этого, составит около 40 млн. дирхамов в год, и это будет иметь дополнительное преимущество в улучшении графика работы обычных судов.

    Такой однодневный суд в настоящее время действует только в Дубае и уже рассматривает большое количество дел. После его введения, судьи начали разрешать тысячи дел в месяц, рассматривая различные типы ситуаций. Наиболее распространенная форма дел – это  фальшивые чеки. Один из судий  заявил, что около 80% дел, которые он рассматривал, касались этой темы. Они также занимаются вопросами, касающимися алкоголя (незаконное потребление и хранение), попрошайничества, незаконных продавцов и секса вне брака . Существует в общей сложности около 20 типов ситуаций и дел, которые рассматриваются в подобном суде.  Например, любое дело, которое касается фальшивого чека, стоимость которого превышает 150 000 дирхамов будет приводить к тюремному заключению, а все, что меньше, повлечет за собой денежный штраф равный сумме чека.

    Дела с помощью полицейских участков передаются непосредтвенно в суд. По состоянию на 8 марта 2018 года они обязаны доводить любые дела о проступках, до однодневного суда. В этом есть множество преимуществ. В том числе тот факт, что,  поскольку полиция и суд будут работать вместе, они могут полностью обойти стандартные судебные процедуры. Сотрудники полиции устанавливают акт проступка либо он доводится до их сведения, зате начинают производиться необходимые формальные процедуры. Образование подобной схемы  формирует  совершенно отдельную систему, и именно  это нововведение частично является причиной улучшения экономики в будущем.

    Конечно, суд имеет дело только с лицом, причастным к проступку. Тем не менее, часто встречаются случаи, когда в деле задействовано больше лиц. В этом случае  такие лица по-прежнему смогут посетить обычные гражданские суды на получение компенсации.

    Конечно, еще один важный момент, который следует учитывать, заключается в том, что экономия времени происходит повсеместно. Суд и вовлеченные в него люди не потеряют своего времени. С момента задержания полицией до момента вынесения приговора потребуется не более нескольких дней. Далее было заявлено, что общее время ожидания рассмотрения дел упадет примерно на 60%, что улучшит работу всей системы.

     

    Какие шаги предпринимаются для срочного арбитражного суда? 

     

    В тех случаях, когда речь идет не о преступлении, а о гражданских делах, они не могут подниматься в однодневном суде.Предприятия часто выбирают арбитражный суд в качестве первой инстанции. Причина такого выборазаключается в том, что это может привести к взаимным соглашениям и благоприятным результатам для всех вовлеченных сторон. Это такжеможет означать, что в будущем субъекты могут сотрудничать мирно.Дубайский международный арбитражный центр (DIAC) является органом, который управляет всеми аспектами арбитража. Он был создан в 1994 году , со временем заменив, Федеральный закон№ 11 от 1992 года. Однако в течение ряда лет были введены дополнительные нормативные акты, и самым последним дополнением стал Федеральный указ № 6 от 2018 года. Этот закон в настоящее время является нормативным актом по теме арбитража в ОАЭ. Еще одной причиной введения данногозакона является то, что арбитраж – это вопрос, который рассматривается глобально. Чтобы встать на одну ступень с современным миром, стране потребуется совершенствовать тему ускоренного арбитражного суда. 

    ]]>
    Mon, 05 Nov 2018 12:00:00 GMT
    <![CDATA[Консолидация экономического статуса]]> Консолидация экономического статуса

    Вступление

    В связи с глобальными изменениями, особенно на Ближнем Востоке, люди сталкиваются с рядом экономических проблем. Большинство стран Ближнего Востока являются развивающимися, стремящимися консолидировать свое финансовое положение в регионе, а также в мире.

    Это бесконечная гонка экономического роста, поскольку каждая страна выглядит как сильная экономическая держава. Поскольку победитель будет обладать большим количеством контрактов и соглашений с инвесторами, ему необходимо доказать, что страна является идеальным местом для инвестиций, дабы не подвергать риску самих инвесторов. Соединенные Штаты Америки давно взяли на себя роль самого мощного экономического субъекта в мире, и с тех пор это место не было завоёвано ни одной другой крупной страной.  Например, Китай - большая  страна, которая является постоянным членом Совета Безопасности. Несмотря на то, что его отрасли затмевают многие страны мира, Китай по-прежнему опасается экономических санкций США, что может нанести ущерб китайской экономике.

     

    Страны Сотрудничества Персидкого Залива

    Значительный доход стран залива составляет прибыль от нефтяных месторождений. Остальная малая часть доходов - это налоги, таможенные пошлины и инвестиции в государственные проекты, которые в основном находятся в зарубежных странах (например, рынок недвижимости).

    Например, объем инвестиций Саудовской Аравии в США превысил 1 триллион долларов, по данным CNN. И напротив, инвестиции США в последнее время достигли 10 миллиардов долларов, что позволило улучшить экономику Саудовской Аравии и привлечь больше иностранных клиентов. Мы легко можем представить себе большую разницу между инвестициями обеих стран. Поддержка самих инвесторов и их инвестиции в страну увеличивает доходы государства и приводит к росту ВВП, тем самым способствуя развитию разных областей, таких как производство, рынок недвижимости, туризм, технологии и многие другие.

    На сегодняшний день страны Совета по Сотрудничеству Персидского залива переводят прибыль от нефтяных доходов к не-нефтяным, а также организовывают  прочную инфраструктуру и стимулируют инвестиции в эти страны, резко снижая цены на нефть в мире, что приводит к большому дефициту для стран, экономика которых сильно зависит от продажи нефти. В связи с этим начали предприниматься методы по избежанию таких трудностей на мировых энергетических рынках.

    В 2016 году нефтяная отрасль столкнулась с резким спадом, что поспособствовало  снижению ставки барреля до 40 долларов США. Это привело к снижению более чем на 60 процентов; поэтому нетрудно представить ситуацию стран, прибыль от нефти которых составляют более 70% от общего дохода. Падение цен на нефть вызвало большой дефицит для некоторых стран, таких как Кувейт и Саудовская Аравия, доход которых преимущественно зависит отнефти. 

    Эти страны должны работать над экономическими реформами, чтобы изменить ситуацию в лучшую сторону, например:

    1. Саудовская Аравия может создать систему крупных реформ через программу Saudi economic Vision 2030;

    2. Государство Кувейт может ввести крупную реформу своей экономики;

    3. Наложение налога на добавленную стоимость во всех странах залива; и тд.

    Поэтому мы подчеркиваем, что в большинстве этих реформ основное внимание уделяется увеличению инвестиций, привлечению капитала, стимулированию развития инфраструктуры и принятию законов для инвестирования в различные сферы промышленности, туризма, сферы услуг и недвижимости.

    Роль ОАЭ в поддержке инвестирования.

    Являясь одной из ведущих стран залива, Объединенные Арабские Эмираты приняли законы, подходящие для иностранных инвесторов. Это привело к большой прибыли государственного бюджета. В 1970-х годах нефть составляла более 90% от общих государственных доходов Объединенных Арабских Эмиратов. Однако уже в 2016 году доля  нефтяного сектора достигла 70% от общего объема государственных доходов.

    С момента своего создания правительство ОАЭ диверсифицировало доходы страны, а не просто полагалось на единственный источник дохода, что помогло избежать опасностей, с которыми столкнулся кризис цен на нефть.

    Одной из наиболее заметных областей, достигнутых в Объединенных Арабских Эмиратах, является примечательное развитие значимости иностранных инвестиций в стране.

    ОАЭ закрепили закон, разрешающий иностранцам владеть всеми долями компании или ее партнерам:

    Статья 10

    Коэффицент Национального Вклада

    1- За исключением компаний совместного владения и простых командитных компаний.

    Компании, в которых все существующие партнеры  должны быть гражданами ОАЭ. Компании, созданные в государстве, должны иметь одного или нескольких партнеров, являющимися гражданами ОАЭ и владеющими не менее, чем 51 процентов капитала компании.

    2 - Несмотря на положения пункта 1 настоящей статьи, Кабинет министров может основываться на предложении, сделанном министром по согласованию с компетентными органами, вынести решение, согласно которому класс видов деятельности будет исключительно осуществляться гражданами ОАЭ.

    3 - Любая передача права собственности  доли партнера, которая может повлиять на процент, указанный в пунктах 1 и 2 настоящей статьи, недействительна.

    К концу 2018 года иностранным инвесторам будет разрешено владеть всеми или частью доликомпании в ОАЭ. В настоящее время должен быть местный инвестор, которому принадлежит большая часть акций компании, то есть не менее 51 процента. Это требует от всех иностранных инвесторов отказаться от наибольшей доли в пользу местного инвестора, что затрудняет инвестирование иностранных граждан, и вынуждает отказатьсяот большей доли компании, даже если настоящий партнер не требуется. Вот один пример, который демонстрируетнам желание некоторых иностранцев инвестировать в Эмираты- это успех свободных зон в ОАЭ.

    Свободные зоны в ОАЭ привлекают множество иностранных инвесторов, и некоторые международные компании создали свои компании внутри ОАЭ, но в пределах свободной зоны.  В ОАЭ существует более 30 свободных зон. Примерами этих свободных зон являются расположенные в Дубае: Jebel Ali Free Zone, Dubai Silicon Oasis Free Zone, Dubai Airport Free Zone, и Dubai Healthcare City.

    Эти свободные зоны имеют некоторые преимущества для работающих в них компаний.

    Одной из наиболее важных особенностей является иностранное владение всеми долями компании (гражданин ОАЭ не обязан выступать в качестве партнера). Одним из существенных условий, применяемых к этим компаниям, является то, что они не могут вести свою деятельностьза пределами свободной зоны, и также им строго запрещено сотрудничать с государственными и правительственными учреждениями.

    Новый закон позволит иностранным инвесторам владеть всей долей или около 90 процентов доли компании в ОАЭ, работать в любом месте в пределах границ ОАЭ, а также заключать контракты со всеми государственными органами и учреждениями, что  однозначно начнет привлекать многих инвесторов работать в этой стране.  Это также позволяет инвестору принимать все решения в компании без участия или вмешательства ее руководства.

    Однако будут введены некоторые условия для полного иностранного владения всей компанией: 

    1. Этот закон будет распространяться на такие области, как энергетика и технологии. Например, Apple, Samsung и Google. Эти компании внесут большой вклад в экономику страны и будут развивать ее инфраструктуру.

    2. Должно быть одобрение Совета Министров на следующее:

    • Компания: цель применения этого закона - глобальные гиганты.

    • Инвестор: инвесторы должны пройти проверку; что они не являются лицами, которым запрещено торговать, или террористами, или гражданами недружественных государств.

    3. В этих компаниях будет оказана поддержка гражданам ОАЭ. Эти компании предоставят много возможностей трудоустройства для молодежи ОАЭ, благодаря чему молодое поколение будет повышать свою компетентность и узнавать многое из опыта международных компаний, которые добились больших успехов в своих областях.

    Это решение однозначно  увеличит инвестиционный сектор  и принесет большой процент в государственный  бюджет, превысив один триллион дирхам ОАЭ. Можно представить соотношение инвесторов и международных компаний после принятия этого решения. ОАЭ за малый срок времени стал глобальным центром региона, а рост экономики ОАЭ сыграл огромную роль в активации многих жизненно важных секторов, таких как технологии, энергетика, электричество и многие другие. 

    ]]>
    Sat, 03 Nov 2018 12:25:00 GMT
    <![CDATA[A Guide to Non-compete Clauses in the Middle East]]> A Guide to Non-compete Clauses in the Middle East

    Introduction

    Non-compete clauses are sometimes incorporated into the contracts of employees to ensure the security and protection of the employer if an employee decides to move to another company. When working for an entity, individuals will likely pick up on and be privy to highly confidential information and practices of their employers. In the modern and extremely competitive business environment, companies look to obtain every advantage they possibly can. A company's unique selling points are what allow them to rise above their competitors, and these unique characteristics can include everything from trade secrets to working practices and even knowledge of specific customers and interacting with them. These are all things that an entity would seek to protect.

    Placing a non-compete clause in a contract restricts an individual's future employment in specific ways. That employee will be unable to obtain jobs at similar competing establishments, though the duration and specifics of how this will work will vary based on the country. The clause will have the effect of preventing one from obtaining employment under certain circumstances to ensure one company will not lose business to a competitor due to the profession of the ex-employee.

    It is no small matter, and so there are regulations in place within all of the GCC countries to ensure employers do not take advantage of employees. An individual working for a company in a particular field and at a specific position, when looking for a new job, will most probably be seeking in a similar sector. Realistically, this related sector will also be the one they would be most likely to find work in, and so this gives rise to something of a problem. If a non-compete clause is present, how will an employee find further employment?

    There are solutions to this, such as time limits, though more often than not, these limitations have to be reasonably specific. Non-compete clauses are not intended to give any single party an advantage over the other, and they are indeed not intended as oppression to the employee. Preferably it is merely a preventative measure used by the employer to secure their business.

    Contents

    1.   Non-Compete Clauses in the UAE

           1.1     Federal Law Number 8 of 1980

           1.2      In the Case of Litigation

           1.3      Ministerial Resolution Number 297 of 2016

    2.      Non-compete Clauses in the DIFC

            2.1    DIFC Law Number 6 of 2004

    3.      Non-compete Clauses in the ADGM

            3.1    The Employment Regulations 2015

            3.2    The UK Common Law and Equity

    4.      Non-compete Clauses in Kuwait

             4.1   Law Number 10 of 2007 (Competition Law)

             4.2   Damages for a Breach of Contract

    5.      Non-compete Clauses in Bahrain

             5.1   Law Number 36 of 2012

    6.      Non-compete Clauses in Oman

             6.1    Royal Decree Number 50/90

             6.2   Sultan's Decree Number 35/2003

    7.      Non-compete Clauses in Saudi Arabia

            7. 1   Royal Decree Number M/21 of 1969

            8.1    Royal Decree Number M/51 of 2005

    8.     Conclusion

     

    1.   Non-compete Clauses in the UAE

     

    The UAE is a highly competitive business market, being the most famous and popular in the Middle Eastern region; this is made clear when looking at its population, which consist of around 90% being expatriates. Non-compete clauses are quite well regulated although the matter can often be complicated. On top of this, the ADGM and DIFC free zones have differing regulations.

    The principal regulations on this matter are:

    • Federal Law Number 8 of 1980 (Labour Law)
    • Ministerial Resolution Number 297 2016

          1.2  Federal Law Number 8 of 1980

  • Federal Law number 8 of 1980 is the general labor law of the UAE. It does not explicitly mention non-compete clauses, though Article 127 does concern the matter
  • Within Article 127, it says that in the case that an employee's work allows them to become familiar with the clients of their employer, or if that work exposes them to the trade secrets of the company, the employer will be in a position to oblige a non-compete restriction upon the employee.
  • These are the conditions under which a non-compete clause may be allowed as per the law, though the Article also states conditions.
  • Article 127 States that for this restriction to be applicable, the employee must be over the age of 21 from the time of the contracts initial formation.
  • On top of this, the clause must be limited regarding the time and place. Further, it should also be limited to similar forms of work that would directly allow for competition with the original employer and will not be permitted unless it is necessary for them to protect and safeguard their lawful interests.
  • From this, a point that can be noted is that the law is stated in such a way to ensure a fair system. A non-compete clause cannot be used to take advantage of the helpless. The age restriction is present to provide that those who are very young do not have the early and crucial stage of their careers unnecessarily restricted, as this could have more considerable repercussions on them.
  • On top of this, the time and place restrictions are just a matter of fairness. For time limitations, markets change and so there must be an absolute time limit after which the employment of that employee will not have a noticeable or competitive impact. Further to this, employees employed within the UAE will be less likely to interact with clients in competitors in other jurisdictions, and with the international market and competition on such a scale being far more unpredictable, a limitation will have to exist.
  • Of course, the non-compete clause must prevent work in a similar business that would be in direct competition with the employer. They should be able to demonstrate that in the ex-employee working in the new company, they will suffer losses directly as a result.
  • Due to Article 127, it is more often than not, more senior employees who receive these clauses in their contracts. Those at a decision-making level who would potentially be able to impact the interests of a company and their competitivity with their knowledge may genuinely require a non-compete clause; there will be little to no positivity to arise from applying non-compete clauses to lower level employees or those privy to less insider knowledge.
  •       1.2   In the Case of Litigation

    Escalating a case to litigation is a serious matter, and so there must be a certainty of a breach. However, the UAE's outlook and handling of these cases can be quite a complicated procedure. 

    ]]>
    Mon, 08 Oct 2018 13:04:00 GMT
    <![CDATA[Project Financing]]> Examining Project Financing issues and Regulations

    Introduction

    Driving through Dubai one is inundated with the view of cranes and construction sites, however, if a closer look is taken it becomes increasingly more evident that many, if not most of these sites are inactive and the buildings are left skeletons of the creations that they were meant to be. Project financing in the GCC region has seen a rapid dive in recent times, and the feeling of the effects is throughout the GCC.

    Due to a concerted drop in the oil prices, there was a resultant shortfall in government revenues and budget deficits across the region. The GCC region is suffering a reported two hundred and seventy billion dollars (USD) project finance gap. However, the region has announced a slew of infrastructure programmes, and this can be attributed to external sources keeping the funding tap open to infrastructure projects. With governments taking a cautious approach and only focusing on critical projects.

    The value of UAE projects awarded rose by 15.1. Percent, quarter-on-quarter in the first half of 2016. Bahrain and Kuwait reported increases of 77.1 percent and 242.2 percent in projects awarded during the first quarter, on a quarter-on-quarter basis, while Oman and Bahrain saw yearly increases in projects. Saudi Arabia and Oman saw the sharpest quarterly falls of 42.9 percent, 45.7 percent, and 48.2 percent respectively, in value terms, while for GCC as a whole the value of project awards contracted by 14.8 percent quarter-on-quarter and 45.6 percent on a year-on-year basis.

    Lower oil prices have been a significant constraint on the amount of funding available to GCC governments to finance capital and infrastructure projects, forcing them to look at alternate solutions.

    Asian and European export credit agencies are increasingly providing funding or finance guarantees to help their contractors secure projects. An example of this was the USD 2.9 Billion LNG import and regasification terminal in Kuwait awarded to a consortium led by South Korea's Hyundai Engineering and Construction.

    The project finance market in the GCC region conceals several challenges. These challenges include the drop in oil prices, the tightening fiscal positions across the region causing delays to protect, rationalization or even cancellations of projects.

    It is against this backdrop, increasing capital requirements stemming from Basel III implementation are affecting regional banks' ability to support projects with longer tenors. Also, liquidity pressures linked to lower oil prices persist in some markets while in others they arise intermittently. "Banks in the GCC region traditionally operate with high levels of capital, but we expect Basel III to make a significantly less amount of capital available for project finance," says Micheal Wilkins, managing director of infrastructure ratings at S&P Global.

    Filling the funding gap

    In order to bridge the gap in the funding, there has been an evident trend emerging throughout the region. The first trend is the increasing presence of large international banks, specifically from Asia. This increase is having a significant positive effect on the market. These international banks have many years of experience engaging in global project finance deals and come with large balance sheets, and they are adding an extra dimension to the regional funding landscape. 

    The contribution of non-regional lenders has been elevated to new heights due to various 'push' and 'pull' factors. Negative interest rates in Japan, for example, have contributed to a large-scale push by the country's banks to seek better returns overseas. Three Japanese banks topped a Thomson Reuters global league table for bookrunners on principal underwriters for project financing by value in 2016.

    The bank that came out on top was Mitsubishi UFJ Financial Group (MUFG), such a bank has had a stable presence in the region for over the past few decades. The bank provides that project finance is an asset class that the bank has extensive knowledge in, this knowledge is inclusive of all risks associated with project finance. In the GCC mainly, the expertise of this bank has seen it lead on some of the regions' most significant project and infrastructure deals of recent years. An example of this is the financing of Abu Dhabi's largest solar plant, a 1.17-gigawatt facility located in Sweihan, which included $650m raised from local and international banks, MUFG was the lead arranger for the loan.

    Another trend is the innovative new financing methods, which include a growing role for regional capital markets by opening up new funding options for project finance participants.

    Regional project finance market

    There have been many delays and re-tender of projects in the GCC region in recent times, and this has meant that some bigger project finance markets have offered less stability than they did in the past. 

    The proposal is that local bank funding across the region will become more expensive. This proposal reflects slow growth in deposits in some markets as well as higher capital requirements, which will force many institutions to be more selective when it comes to their balance sheet allocations. As a result of this, space is opening up for capital market financing for project and infrastructure finance.

    Mr. Jennings from S&P Global stated that "we are seeing more avenues open up for other investors coming into the market who are comfortable taking on longer terms asset risk. Indeed, there is much interest, particularly in the GCC, for debt capital market and institutional investors and we have seen different pockets of liquidity open up in that regard.

    Market bonds' bounce

    There are much-needed work and procedures to be implemented before alternative financing mechanisms reach a meaningful scale. Across the GCC region, local currency debt markets are mostly undeveloped. Also, research shows that bank loans accounted for about 90% of total corporate and infrastructure financing over the first eight months of 2016, up from about 74% in 2013.

    In order to address some of the challenges, regional banks are turning to samurai or kangaroo bonds to raise debt at a lower rate and to diversify their liabilities. These funds were lent back to corporates involved in project finance deals.

    Although the immediate financing gap may be severe, the new trends cumulatively bode well for the region's project finance aspirations. GCC markets are currently adapting to the environment in which they find themselves. If over time, a more extensive range of banking institutions, coupled with a more diverse array of funding sources, begins to address the project finance gap, the outcome can only be positive for all concerned.

    Mr. Jennings went on further to state that, "a project finance market of the size and scale of the Middle East does not work with just one or two big lenders. You need a good number of primary banks and also secondary interested parties, including debt and institutional investors."

    The Basel III Accord

    The Basel iii Accord was formed to strengthen the regulation, supervision, and risk of the banking sector. The Basel Committee is the regulatory body responsible for the Basel iii Accord and is the primal global standard-setter for the prudential regulation of banks and provides a forum for cooperation on banking supervisory matters.

    GCC Banks position for Basel III

    The Basel III aims to absorb financial shocks, enhance risk management and improve banks' transparency. The banks in the GCC region already mostly conform to the Basel II. The new framework requires increased and better-quality capital, liquidity standards, a new leverage ratio, and capital buffers to be absorbed in tumultuous periods. Other drives include:

  • A greater focus on stress testing;
  • The analysis of risks related to capital market activities; and
  • More rigid requirements for systemically important banks.
  • For regional banks, the higher capital requirements provided for by the Basel III Accord will leave many regional lenders with less room to support project finance deals.

    Chiradeep Ghosh from Bahrain's Security and Investment Company stated, "in terms of Basel III implementation, Saudi Arabia is doing quite well. We estimate that the average core Tier 1 capital ratio for Saudi banks in 17.5%. So Saudi lenders are well placed to continue engaging with finance deals. Global standards well capitalize Even UAE banks; we estimate that their average core Tier 1 capital ratio is about 14%."

    Reasons why projects fail

    Generally, construction projects fail due to lack of proper planning. However, there are other reasons for such failure, the dividing of which can be into causes related to owners and causes related to contractors.

    Causes related to owners:

  • Scope issues;
  • Communication issues;
  • Determining load lead items;
  • An inexperienced or under-qualified project team;
  • Poor estimates;
  • The relationship between project budgets and plan;
  • Incomplete designs;
  • Lack of risk management;
  • Unrealistic schedules.
  • Causes related to contractors:

  • Scope creep and gold plating;
  • Poor estimates;
  • Turnover;
  • Resource shortages and an inexperienced or unqualified project team;
  • Unfavorable contracts;
  • Lack of support from senior management;
  • Design issues;
  • Coordination issues;
  • An overly aggressive schedule; and
  • Lack of risk management to address unplanned conditions.
  • ]]>
    Tue, 02 Oct 2018 12:59:00 GMT
    <![CDATA[Руководство по Патентам на Ближнем Востоке]]> Руководство по Патентам на Ближнем Востоке

    «Патентное ведомство находится в прямом родстве с изобретениями.»

    Введение

    Старший преподаватель Массачусетского технологического института Джо Хадзима определяет патент следующим образом: «Патент является исключительным правом, выданным страной изобретателю, позволяющим ему исключать других из производства, использования или продажи своего изобретения в данной стране в течение срока действия патента».

    Исключительное право, предусмотренное патентом, позволяет владельцу окупить затраты на разработку и получить возврат инвестиций в разработку запатентованной технологии. Патентная защита способна снизить затраты компании и повысить стоимость компании и, как таковая, может сыграть существенную роль в росте любой компании или бизнеса. Мало того, что патенты ценны тем, что они обеспечивают свободу деятельности для компаний, которые конкурируют на переполненном рынке, но они также могут приносить доход при лицензировании таких патентов для компаний внутри и за пределами области патентообладателей. Патенты повышают общую корпоративную стоимость и в основном добавляют ценности к интеллектуальным активам компании. Всемирная организация интеллектуальной собственности предоставляет следующие основания для патентования ваших изобретений:

    I. Эксклюзивные права - патенты предоставляют владельцам исключительные права, которые позволяют использовать лицензированный продукт в течение 20 лет с даты подачи заявки;

    II. Сильная позиция на рынке - в силу исключительных прав владелец будет иметь право запретить другим коммерчески использовать запатентованное изобретение - таким образом, уменьшая конкуренцию и устанавливая преимущество на рынке в качестве выдающегося игрока;

    III. Более высокая отдача от инвестиций - в соответствии с эксклюзивными правами, предусмотренными патентом, держатель может коммерциализировать изобретение, которое позволит ему / ей получить более высокую отдачу от инвестиций;

    IV.Возможность лицензирования или продажи - обладатель патента может отказаться от использования патента, продать его или лицензировать права на коммерциализацию его на другом предприятии, которое станет источником дохода для владельца;

    V. Увеличение весомости переговоров - наличие обширного патентного портфеля повысит возможности держателя патента приобретать право на использование патентов другого предприятия;

    VI. Положительный взгляд на ваше предприятие - заинтересованные стороны могут рассматривать патентные портфели как доказательство высокого уровня экспертизы, специализации и технологических возможностей в вашей компании.

     

    1.    Что такое изобретение?

    Бахрейн

    Объект считается новым и применимым для регистрации патента в следующих случаях в соответствии с Законом №14 от 2006 года в отношении патентов и полезных моделей:

    I. Когда такое изобретение не находится в каком-либо составе предшествующих промышленных технологий;

    II. Когда подобное изобретение не известно / очевидно человеку, обладающему обычными навыками в соответствующей практике;

    III. Конструкция считается промышленно применимой, если ее можно применять в сельском хозяйстве, рыболовстве, услугах, ремеслах или любой отрасли в самом широком смысле этого слова;

    IV.Заявка на патент не будет успешной, если предмет изобретения будет обсуждаться публично в ​​Бахрейне или за рубежом в устной или письменной форме, путем использования или любым дополнительным способом применения содержимого изобретения до даты подачи заявки на выдачу патента.

     

    Оман

    В статье 2 Королевского указа № 82/2000, провозглашающей патентный закон, разъясняется, что изобретение будет иметь право на патент, если оно новое, включает в себя новаторскую концепцию и является промышленно применимым, будь то для новых промышленных продуктов, используемых промышленных методов и средств, или для нового применения известных промышленных способов и средств и не противоречит общественному порядку и морали, противоречащим принципам исламского шариата или затрагивающим национальную безопасность.

     

    Объединенные Арабские Эмираты

    В соответствии с Федеральным законом № 7 от 2002 года с поправками, внесенными Законом № 32 от 2006 года об авторском праве и смежных правах, следующие работы могут быть защищены патентом:

    I. Книги, буклеты, статьи и другая литература;

    II. Компьютерное программное обеспечение и приложения, базы данных и аналогичные продукты, определенные в решении, которое будет выдан министром;

    III. Лекции, речи, проповеди и другие произведения аналогичного характера;

    IV. Пьесы, мюзиклы и пантомимы;

    V. Мюзиклы, сопровождаемые диалогом и мюзиклы, которые не сопровождаются словесно;

    VI. Работа с аудио и видео или аудиовизуальная работа;

    VII. Архитектурные работы и архитектурные планы и чертежи;

    VIII. Работы, связанные с рисунком, живописью, скульптурой, травлением, литографией, трафаретной печатью, рельефными печатью глубокой печати и другими подобными произведениями изобразительного искусства;

    IX. Фотографическая работа и тому подобное;

    X. Работа прикладного искусства и пластического искусства;

    XI. Графики, карты, планы, трехмерное моделирование для географических и топографических приложений и архитектурных проектов;

    ХII. Производные работы под защитой, обеспечиваемой работой, на которой они основаны. Обеспечение безопасности распространяется на название работы, а также на разработанную креативную концепцию.

    Предоставление патентной защиты изобретений, которые являются новыми, оригинальными и полезными. Условия защиты патентов - 20 лет с даты подачи заявки.

    ]]>
    Sun, 09 Sep 2018 12:04:00 GMT
    <![CDATA[Agency Laws in the GCC Countries ]]> AGENCY LAWS IN THE GCC COUNTRIES

    Introduction

    The extension of the multinational partnership is either setting up its subsidiary in remote purview or to tie up with the local organization in a foreign jurisdiction. United Arab Emirates (UAE) is one of the distant locals where international organizations are going into office concurrences with the Emirate nationals keeping in mind the end goal to grow their business in the UAE since the UAE being a well networked international port. A global entity wishing to set up a company offshore with cost-effective investment UAE is a standout amongst the most advantageous alternative where the foreign companies either enters into distribution agreement or makes an arrangement with the commercial agencies to expand their business with the locals. The UAE Agency Law manages these commercial agencies and distribution agreement in the UAE according to amended Federal Law 18 of 1981usually known as Agency laws. Federal Law 13 of 2006concerning agency law was revised and revoked in 2010. However, the Federal law 18 of 1981 was a reestablishment.

     

    The Emirate of Abu Dhabi established Federal Law Number 11 of 1973which centers around the task and control of business office exercises. This arrangement of Federal Law Number 11 of 1973had constrained the foreign business in Abu Dhabi and had created various challenges for the government about essential regulation carried out for commercial activities additionally talked about in this guide.

     

    These agency agreements have a positive effect on UAE's economy since there is an increment in Foreign Direct Investment (FDI). Indeed, even the previous Ministry of Economy SheikhaLubna Al Qasimi states that "The new revisions will certainly boost the financial market in the UAE. This law declared out of the longing to improve and keep up steadiness in costs and guarantee that organizations are not controlled to expand costs." Furthermore, the administration of UAE His Highness Sheik Khalifa bin Zayed Al Nahyan, President of the UAE and His Highness Sheik Mohammed receptacle Rashid Al Maktoum, Vice President and Prime Minister of Dubai, they all are resolved to offer help for the development of the economy in the UAE.

    STA Law Firm house one of the leading corporate attorneys in the entire of UAE. We believe that commercial agency laws for the protection of local agents from the termination of agency agreements by the foreign entity without any legitimate reasoning. Besides, the comparative study of agency laws has been done between UAE, Oman, Kuwait, Bahrain and Saudi Arabia.

    CONTENTS

    1.Agency Laws in United Arab Emirates

    1.1Definition 

    1.2Types of Agencies

    1.3Sham Agency Registration

    1.4Termination of Sham Agency Agreement

    1.5Termination of Agency Agreement

    1.6UAE Court's jurisdiction in Commercial Agency Agreement

    1.7Commercial Agency Committee

    1.8Arbitration in the UAE

    1.9Penalties

    1.10Agency Laws in Abu Dhabi

    2.Commercial Agency Laws in Oman

    2.1Introduction

    2.2Definition

    2.3Registration of Agency Agreement

    2.4Kinds of Agency Agreement

    2.5Ownership

    2.6Termination of Agency Agreement

    3.Commercial Agency Laws in Kuwait

    4.Commercial Agency Laws in Bahrain

    4.1Introduction

    4.2Definition

    4.3Ownership

    4.4Exclusivity

    4.5Termination of Agency Agreement

    4.6Penalties

    5.Commercial Agency Laws in Saudi Arabia

    5.1Introduction

    5.2Definition

    5.3Features of Agency Law

    5.4Ownership

    5.5Commission

    5.6Choice of law and Jurisdiction

    5.7Termination of Agency Agreement

    6.Conclusion

    7.References

    Overview

    The definition of commercial agency law as per Federal Law Number 18 of 1981(the UAE Agency Law) 'any disposition whereby an international company is represented by an agent to allocate, vend, tender goods or services within the UAE for a charge or profit.'  The rights of the Emirate agents are only protected under Federal law 18 of 1981(UAE Agency Law)if the registration of agency agreement with the UAE Ministry of Economy. Unregistered agreements do not render the rights of Emirate agents or protect them from the termination of agency agreement by the foreign principal under UAE Agency Law. Additionally, UAE commercial agent should hold a valid and appropriate license in each Emirate along with enrolment with the Chamber of Commerce in each relevant Emirate.  Article 4of the UAE Agency law (Federal law 18 of 1981as amended) states that there should be a straight connection between a UAE commercial agent and the foreign principal without any interference by the regional or multi-country sales agent. On the other hand, Article 5of the UAE Agency Law (Federal Law 18 of 1981as amended) states that ' A qualified commercial agent will be regarded selective in its domain, however, enables an international organization to delegate a different commercial agent for every emirate.' The Federal Act, 1981defines Commercial Agency as 'the representation of the principal by an agent for distribution, sale, display or provision of any commodity or service within the state (the UAE) in consideration of any commission or profit.' Here the word principal includes the manufacturer, whether based in the UAE or overseas. A common phenomenon observed in all the GCC countries is that if there is no registration of commercial agency agreement, then it will not be recognized by the courts or an agent will not have solid ground to defend himself from the termination of an agency agreement.  Therefore, commonly tan here are two types of agency agreements such as:

    I.    Registered agency agreements-  an agent can register commercial agency agreement before the Commercial Agency Registrar to protect themselves from an illegal termination of an agency agreement.

    II.    Unregistered agency agreements-  an agent enters into an agency agreement with the foreign private entity without registering the agreement with Commercial Agency Registrar then it is recognized as unrecorded agency agreement. Most of the courts in the GCC countries do not recognize or can protect a local agent from an invalid termination of an agency agreement. 

    AGENCY LAWS IN ABU DHABI

    The Emirate of Abu Dhabi enacted Abu Dhabi Law Number 17of 1969which states that "no person is permitted to conduct any commercial activity before obtaining a license by the commercial License Law of 1969." This provision of law had created commotion in the commercial market which limited the Foreign Direct Investment in Abu Dhabi. Therefore, Abu Dhabi Law Number 11 of 1973repeals Abu Dhabi Law Number 17 of 1969 which encourages Foreign Direct Investment as it focuses on operation and regulation of commercial agency activities. In Abu Dhabi, a business agent does not have exclusive rights over the products of the foreign entity once they enter commercial agency agreement as an agent is a mediator. An agent is a mediator for foreign companies to set up their business in Abu Dhabi because without an agent a foreign corporation cannot expand their business in the UAE.

    According to Abu Dhabi Law Number 11 of 1973it is not explicitly mentioned that registered or qualified agent would be protected under a specific provision if the foreign entity terminates agency agreement without any valid reasoning.

    Furthermore, in other jurisdictions of the GCC countries, qualified agents are protected under their specific agency laws if the registration is agency agreement is carried out before the Commercial Agency Registrar. This guide entails in detail about agency laws in the GCC. Click here to read more.

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    Thu, 14 Jun 2018 15:28:00 GMT
    <![CDATA[Логистическая Зона Бахрейна]]> Сердце Залива  - Бахрейн

    «Стартап – это компания, которая не знает, что она продает, кто ее клиенты и как зарабатывать деньги».

    Центральное расположение в регионе Персидского Залива, стабильный экономический климат, атмосфера, благоприятная для бизнеса, современные технологии и исключительные возможности для бизнеса – достаточные аргументы для убеждения инвестора вложиться в стартап. Бахрейн привлекает иностранных инвесторов в течение последних двух десятилетий и прекрасно понимает их потребности. Благодаря устойчивому росту в экономике Ближнего Востока множество компаний готовы инвестировать в растущую многомилионную экономику. В то время, когда другие страны борются за инвестиции, Бахрейн будет правильным выбором для ведения прибыльного бизнеса.

    Учитывая экономическую характеристику, Бахрейн широко известен как самый свободный экономический рынок на всем Ближнем Востоке, который опережает страны G7, такие как Япония, Франция, Индия, Китай и Германия. Главной целью страны является сохранение статуса самого свободного рынка в Персидском Заливе любым путем. Правительство Бахрейна играет решающую роль в обеспечении роста производительности частного сектора за счет найма квалифицированной рабочей силы. По сравнению с другими странами Персидского Залива Бахрейн был первым в диверсификации своей экономики от нефти, тем самым поддерживая ее стабильность. Это был правильный шаг в достижении звания наиболее благоприятной бизнес-среды.

    На международном уровне Бахрейн хорошо известен благодаря своим двусторонним торгово-экономическим соглашениям с более чем 45 странами, в числе которых Индия, Франция, Германия, Китай, Сингапур и Великобритания. Одно из самых выгодных соглашений было заключено с США, в соответствии с ним компании могут взимать на 35% больше за свои товары и услуги, чем в Бахрейне и могут пользоваться беспошлинной торговлей на рынке США. Трейдинговым компаниям открыт весь рынок Ближнего Востока с дополнительными возможностями экспорта по всему миру в качестве вишенки на торте.

    Текущие реформы обещают успех в развитии бизнес сферы в Бахрейне, а также на международном уровне. Ниже приводятся несколько примечательных моментов в экономике Бахрейна, способных привлечь иностранных инвесторов для инвестиций в свободную зону Бахрейна:

  • Самые низкие налоги в Персидском Заливе, без корпоративного, личного или подоходного налога;
  • Сто процентное иностранное владение;
  •  Свободный от ограничений капитал, прибыль, дивиденды;
  • 16 место в рейтинге самых свободных экономик мира;
  • Первая страна, имеющая соглашение о свободной торговле с США.
  • Путь к Доходам

    Свободные зоны Бахрейна признаны лучшими в мире, так как они, как известно, являются оптимальной деловой средой  для международных компаний для ведения внутреннего и внешнего бизнеса. Бахрейн во многом является одной большой фризоной, так как он i) освобожден от налогов ii) позволяет стопроцентное иностранное владение в некоторых отраслях iii) имеет минимальные таможенные пошлины. Это ключевая привлекательность для международных компаний, стремящихся установить присутствие в регионе и ожидающих высокого уровня экономического роста. Бахрейн имеет три основные зоны свободной торговли (FTZ). К ним относятся Логистическая Зона Бахрейна (BLZ), Международный Инвестиционный Парк Бахрейна (BIIP) и Зона Аэропорта Бахрейна (BIA). В отличие от других стран Ближнего Востока Бахрейн не требует наличия местного жителя Бахрейна в качестве акционера для торговой и коммерческой деятельности.

    Логистическая Зона Бахрейна идеально расположена рядом с портом Халифа бин Салман, который предлагает современные склады, в 13 километрах от международного аэропорта Бахрейна и всего в 40 километрах от Аль-Хоббар в Саудовской Аравии. BLZ предлагает условия сравнительно более дешевые, чем другие свободные зоны в Северном Заливе. Основные преимущества выбора BLZ над другими фризонами:

  • 100% иностранное владение;
  • Многообразие доступа наземным, морским и воздушным транспортом;
  • Большой выбор земельных участков, начиная от 4000 m²;
  •  Развитая инфраструктура с достаточной дорожной сетью и специализированными въездами на участки, предназначенными для грузового транспорта;
  • Круглосуточные таможенные услуги;
  • Услуги менеджеров, помогающих в создании и операционной деятельности компании в Логистической Зоне Бахрейна;
  • Основные услуги, включающие управление объектами и отходами;
  • Услуги от А до Я.
  • Логистическая Зона Бахрейна (BLZ) является первой областью логистики в регионе, которая эффективно отвечает требованиям аренды жилья. Являясь первым логистическим хабом на Ближнем Востоке, BLZ специализируется на добавленной стоимости и реэкспортной логистической деятельности. Товары могут быть импортированы или экспортированы, имея нулевой налог и нулевые таможенные пошлины. BLZ регулируется Управлением Портов и Морских Дел при  Министерстве Транспорта и Телекоммуникаций. Она предлагает региональным и международным компаниям платформу для развития и использования всех преимуществ выгодного расположения Бахрейна для обслуживания рынка Северного Залива и быстрого доступа к рынкам стран Залива. BLZ приглашает компании, занимающиеся сборкой компонентов, маркировкой, упаковкой и повторной упаковкой, смешиванием, взвешиванием и распределением, комплектацией и паллетизацией, а также тестированием и ремонтом, кроме того приглашает ретейлеров и дистрибьюторов. Благодаря своему расположению вблизи порта, BLZ будет играть неотъемлемую роль в поддержке основной инициативы по развитию Бахрейна как перегрузочного пункта для региона.

    BLZ предлагает индивидуальные услуги для удовлетворения операционных потребностей бизнеса. Помимо услуг по упаковке, переупаковке, логистике, экспорту и реэскпорту, опытные менеджеры BLZ предлагают индивидуальный персонализированный сервис для предоставления комплексных решений. По согласованию с соответствующими государственными и юридическими организациями, они могут обеспечивать лицензирование, регистрацию, выдачу виз и другие процедуры для обеспечения деятельности в свободных зонах Бахрейна.

    Что Готовит Будущее

    BLZ предоставляет выбор участков для лизинга, начинающихся с 4000 квадратных метров. Независимо от размера участка или его использования, все они оснащены всеми коммунальными услугами, присутствует служба безопасности и другие службы управления. Руководство BLZ планирует увеличить размер свободной зоны на 150 процентов, что составляет 475000 м2, что позволит привлечь 600 миллионов долларов США прямых инвестиций.

    Компании, зарегистрированные в свободной зоне, уже начали предварительное бронирование, как например, CEVA logistics из Нидерландов, которая зарезервировала склад площадью  10,000 m2. Danzas AEI Intercontinental, который является рабочим подразделением DHL Global Forwarding в Бахрейне, также подтвердил намерение открытия нескольких административных центров логистики в BLZ. Открытие BLZ как центра развития бизнеса на Ближнем Востоке, укрепит положение Королевства как важного промежуточного торгового пункта, одновременно создавая предприятия на более, чем 280 миллионов долларов США. Существующие проекты дальнейшего расширения территории на 150 процентов дополнительно прибавят 600 миллионов долларов. Свободная зона привлечет более 50 близлежащих локальных и международных инвесторов, создавая около 2400 рабочих мест в логистической зоне. После окончания строительства BLZ предложит своим арендаторам распределительный центр, торговые и офисные помещения до 475,000 квадратных метров.

    Награды и Признание

    BLZ  продвигается на рынке как первый мультифункциональный логистический центр на Ближнем Востоке, специализирующийся на реэкспорте и действиях по приросту стоимости. BLZ была выбрана в номинации «Экстраординарное достижение года» в прошлогодней премии Системы Поставок и Транспорта (SCATA), в сотрудничестве с Hala Supply Chain Services (HSCS), Gulf Agency Company (GAC), Gulftainer и Департаментом Экономического Развития Дубая (DED). 

    Бахрейн занимает вторую позицию на Ближнем Востоке в Индексе Материально-Технического Обеспечения Всемирного Банка и стремится стать точкой соприкосновения для соседних локальных или международных организаций, расширяя их деятельность внутри страны. Благодаря улучшению кредитно-денежной политике Бахрейна, страна имеет лучшие логистические офисы на Ближнем Востоке. Эта зона имеет выход к значительным морским, наземным и воздушным ресурсам. Это помогает устранить препятствия, которые не позволяют инвесторам добраться до рынков Ближнего Востока, кроме того, значительно сохраняется время на перевозку грузов в Кувейт, Ирак, Иран и другие регионы северного залива.

    Необходимо отметить, что инвестор может создать три типа компаний: предприятие свободной экономической зоны (FZE), компанию свободной экономической зоны (FZC) и филиал иностранной или местной компании. Ниже приведены документы, необходимые для открытия вышеуказанных компаний. 

    Название документа

    FZE

    FZC

    Филиал

    Заявление

    Бизнес план 

    Письмо о намерении 

    Финансовый отчет аудита (за последние 3 года) 

     

    Сведения о компании 

     

    Выписка из банка за последние 6 месяцев

     

     

    Рекомендательное письмо из банка 

     

     

    Копии паспортов акционеров 

     

     

    Доверенность, образец подписи,  копия паспорта и резюме менеджера

    Свидетельство об отсутствии возражений от спонсора

    Регистрационный сертификат от от основной компании 

     

    Меморандум о намерении и Учредительный договор основной компании 

     

    Решение Правления основной компании

     

    Письмо о назначении, доверенность, образец подписи и копия паспорта законного представителя 

    Доверенность, образец подписи и копия паспорта директора 

     

     

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    Tue, 27 Mar 2018 10:15:00 GMT
    <![CDATA[The UN Convention on Contracts for International Sale of Goods]]> An Overview of the UN Convention on Contracts
    for the International Sale of Goods

    If a company in the United Arab Emirates wanted to buy authentic leather abroad, most likely they would start looking for sellers in Italy. Considering that they find such an Italian company, the first step in this process would be to negotiate the contract of sales and to understand each other's requirements. However, if there are no prerequisite standards of international sales, the UAE company would expect an outcome from the contract that may be completely different from the expectation of the Italian company. If not addressed to adequately, these misunderstandings may lead to potential disputes arising and the two groups would find themselves in front of the Court over the sale of leather. While this obviously undesirable to the parties, it is also highly inefficient of their time.

    This topic divides itself into five articles. The first section will address the agreements by UNIDROIT that have paved the way for its creation-the ULF Convention and the ULIS Convention. The second article will examine the development process of the CISG Convention. The third section will address the mechanisms available to prevent disputes from arising; the basis of analysis is on the provisions of the Convention as well as other in several potential international contracts, including the World Trade Organization (the WTO). The fourth article will discuss relevant case laws to examine the flaws of the convention. The fifth section will assess the applicability of the CISG convention and the potential lack of its enforceability.

    On the global scale, there have been constant efforts to promote free trade in the international system. Since free business is understood to be beneficial in most cases, states have already begun adopting it by initiating bilateral or multilateral agreements with each other that facilitate and promote diverse types of trade interactions. However, these arrangements often exclude the necessary uniformity of these interactions. It is vital to consider unifying the understanding and expectations of the sale of goods in the international context. Without this consistency, parties to a transactional agreement are unable to trade as their expectations often contrast efficiently. Therefore, states have signed off to Conventions in the past with regards to this matter. One of the most recent ones, and arguably one of the most successful, is the UN Convention concerning Contracts for the International Sale of Goods (the CISG Convention).

    The CISG Convention is one of the most recent efforts to unify the overall components of and expectations for international trade law. As of right now, it has been the most successful attempt at achieving this goal. The CISG Convention is the most ratified convention concerning the international sales of goods, with more than 85 states adopting the Articles. Preceding it, and supporting its development, were two other agreements attempted by the international community regarding the matter of trade. These two conventions were put together by the International Institute for the Unification of Private Law (the UNIDROIT) to create an internationally recognized protocol for the sale of goods. UNIDROIT was able to compile and develop the ULF and ULIS Conventions in three decades-having it finalized by 1964 and enforced by 1972 amongst nine states. The CISG Convention, signed first in 1980, was the final product of the effort to unify standards of sales and prevent disputes from arising between states. It represents a compromise made following lengthy discussions between representatives of countries with different legal systems and backgrounds. These differences, though outside agreements and conventions may prevent their existence, are addressed further and more directly within the articles of the CISG Convention. Still, despite the available prevention mechanisms, past cases have arisen due to the inability of states to cooperate regardless of the provisions of the article. Their enforceability, as well as the applicability of case laws, is put under debate.

    Development of the Convention

    Since the year 1930, UNIDROIT has been engaging in efforts to establish a universal protocol for the process of trade.[i] These efforts lead to the establishment of two separate conventions for different aspects of the business: The Convention regarding a Uniform Law on the International Sale of Goods (the ULIS Convention) and the Convention concerning a Uniform Law on the Formation of Contracts for the International Sale of Goods (the ULF Convention). While the initiation of the ULIS Convention preceded that of the ULF Convention, the commencement of both of them was in April 1964 through a diplomatic conference held at The Hague. Since then, there has been a constant attempt to get all concerned States on board with the overall cooperation.

    ULIS Convention

    The ULIS Convention introduces the concept of establishing a single process of selling goods internationally. It proposes the fundamental responsibilities and obligations of states that are parties to sale contracts.  The Convention sets a protocol for delivering the products of sale, adapting the agreement, paying the determined price, and more. Further, the Convention includes a particular remedy in the case of a party breaching its provisions.

    As aforementioned, UNIDROIT began work on this Convention starting in 1930-during the time that the League of Nations (the League) still stood as the competent intergovernmental organization. The League organized for a committee of experts to begin preparing a draft of the Convention and simultaneously the communication to the member states of the League in the year 1935 was done. Based on the comments and critiques of the rules, the draft was revised in the next few years and was on the agenda at a diplomatic conference hosted by the League in 1951 at The Hague. Another revision was completed by 1956, recirculated to the governments, and led to the third overhaul in 1983. Eventually, the submission of the final draft of the ULIS Convention was in the year 1964 to the diplomatic conference at The Hague, where it was officially prepared to be signed by interested governments.

    ULF Convention

    Much similar to the ULIS Convention, the concept of the ULF Convention was under construction for an extended period before its final official preparation. The provisions of the Convention are related to more general rules of international trade. It discusses protocols for accepting offers of business, potentially revoking suggestions, and overall forming a standard contract for future transactions.

    The ULF Convention came into existence during the process of constructing the ULIS Convention. In the 1951 diplomatic conference at The Hague, where during the process of approving the first revised draft of the ULIS Convention, member states suggested the creation of a separate convention that deals more specifically with international sales contracts. The idea for this agreement was to shed light on the difficulties of contract formation that commonly occurs during international transactions. A separate draft from that of the UILS Convention was handed over to the League's member states in 1958, and revisions followed until the official finalization of the Convention in the 1964 conference as mentioned above at The Hague. The subsequent article on this topic will explore how the ULIS and ULF conventions have led to the development of the CISG convention.


    [i] United Nations, 2008, United Nations Convention on Contracts for the International Sale of Goods (United Nations Audiovisual Library of International Law)

    This article was initially authored by Sara Al Harfan with additional inputs from other attorneys.

    ]]>
    Thu, 15 Feb 2018 00:00:00 GMT
    <![CDATA[Руководство по нефти и газу: Бахрейн]]> Oil and Gas Country Guide: Bahrain 1. What department/agency regulates oil and gas extraction? What are the primary laws which apply? Several government agencies regulate the oil and gas sector in the Kingdom of Bahrain.
  • The National Oil & Gas Authority (the NOGA) regulates and develops Bahrain's hydrocarbons sector. NOGA also controls exploration and production and is responsible for issuing licenses, permits, and approvals to third parties.
  • The Ministry of Labour is in charge of matters relating to the health and safety of employees in the industrial sector.
  • The Ministry of Industry, Commerce, and Tourism manages Bahrain's industrial sector. 
  • The Supreme Council for the Environment is responsible for the development of environmental policies across all sectors, including oil and gas. The Supreme Council, along with the National Oil & Gas Authority, regulate the conduct of stakeholders in the hydrocarbon industry concerning pollution control.
  • Bahrain Petroleum Company (the BAPCO) has the exclusive right to produce and distribute oil and gas on the government's behalf. BAPCO is the retailer of oil and gas products both in Bahrain and internationally. 
  • Tatweer Petroleum supports the government in its goal to increase oil production and the availability of gas.
  • The following laws apply to the regulation of oil and gas extraction in Bahrain:
  • A. Decree Number 19 of 2015 restructuring National Oil and Gas Authority Board of Directors 
  • Law Number 36 of 2004 concerning the criminalization and combat of the smuggling of subsidized oil products. 
  • Laws Number 2 of 2008, Number 24 of 2009, and Number 6 of 2009 ratify development and production sharing agreements between the Government of the Kingdom of Bahrain and private oil and gas companies.
  • Decree Number 77 for the year 2007 incorporating oil and gas holding companies.
  • Law Number 10 of 2006 concerning specifying the functions and powers of NOGA, established under Decree Number 63 of 2005.
  • Ministerial Order Number 11 of the Year 2006 which deals with banning the export of subsidized petroleum products
  • Royal Decree Number 63 of 2005 in respect of the incorporation of the National Oil & Gas Authority
  • 2. Are there international laws those working in this jurisdiction need to consider? Those working in this jurisdiction need to consider the national laws governing the oil and gas sector in Bahrain which comply with international oil and gas standards, for example on health and safety practices. Contractors' systems for health, safety and the environment (HSE systems) must be compliant with international measures, such as those provided by the International Association of Oil and Gas Production, the International Association of Drilling Contractors, and the International Association of Geophysical Contractors.   3. What are the licensing procedures for carrying out different oil and gas extraction processes? For Development and Production Sharing Agreements (the DPSA), which are production-sharing licenses, the National Oil & Gas Authority (NOGA) will invite contractors to tender. NOGA and the Tender board will make a final decision. The body with the power to grant licenses in Bahrain is the National Oil & Gas Authority (the NOGA). The management of goods and services are governed by Bahrain's Legislative Decree Number 36 of 2002 concerning regulating government tenders and purchases. The law aims to protect public property by limiting the impact of private interests on tender processes, to promote transparency, to ensure government purchases so obtained are at competitive and equitable prices, and to attract the involvement of suppliers and contractors.   4. Is there any appeal process for denial of licenses? There is an appeal process for denied licenses; the appeal must be made 30 days from the date the decision gets delivered, as per Bahrain's Civil Court Procedure rules.   5. Is a national partner or government body required to be involved? All hydrocarbons located within Bahrain's territories are state property. Government bodies and national partners are required to be involved in any project relating to this sector, namely such as Nogaholding, which manages investments owned by the National Oil and Gas Authority.    6. What checks/monitoring is carried out on extraction equipment?   The government monitors extraction equipment through state bodies such as the National Oil & Gas Authority.    7. What checks/monitoring is carried out on extracted oil and gas?   NOGA acts as the principal regulator of the oil and gas sector which includes oil and gas extractions; it has enforcement powers such as the right to revoke an operator's license. The NOGA has previously conducted evaluations of the feasibility of projects. In this vein, the Supreme Council and the Ministry of Labour can inspect projects and force an operator to adopt measures that comply with health, safety, and environmental regulations.    8. Who holds title on oil and gas reservoirs?   All hydrocarbons located within Bahrain's territories are state property. The Bahrain Petroleum Company, which is a state-owned company, will receive crude oil and non-associated gas produced by companies.   9. Is the position different for offshore, surface or subsurface extraction?   The position is the same for offshore, surface and subsurface extraction; they are state property, although this is subject to negotiation.    10. Are there any specific rules governing the ownership of pipelines?   No specific rules govern the construction and operation of pipelines. Authorization must be obtained to conduct this activity.   11. Are there any restricted areas where extraction is not allowed?   There are restricted areas where extraction is not allowed in Bahrain; the National Oil & Gas Authority decides which areas are restricted.   12. Are there any restricted extraction practices, e.g., fracking?   There are restricted extraction practices; the National Oil & Gas Authority decides which extraction practices are limited.   13. Are there any specific environmental laws for industry participants operating in the oil and gas sectors?   The Supreme Council for the environment has the power to regulate activities that may cause pollution. Those operating in the oil and gas sector must consider Bahrain's Environment Act which sets out specific environmental laws for the protection of the environment, as per Legislative Decree Number 21 of 1996. The decree aims to protect the environment from polluting sources, to control pollution, to protect human health and the well-being of marine and land animals and to identify problems caused by environmental pollution. Also, the National Oil and Gas Authority and the Bahrain Petroleum Company have established regulations on environmental practices. Order Number 10 of 1999 on environmental standards (air and water) imposes limitations on the emission of polluting substances from industrial activities into the air and water, such as those that result from petroleum operations. In 2002, the General Authority for the Protection of Marines Resources, Environment, and Wildlife came into existence to developing sustainable development practices.   14. How are oil/gas firms regulated? Do they need to have specific capital, professional status, ownership credentials?   The National Oil and Gas Authority and the Ministry of Industry, Commerce & Tourism issue oil and gas regulations for oil and gas firms. The Ministry of Industry, Commerce & Tourism can place restrictions on trading, fiscal and ownership activities. Oil and gas firms must have specific capital, professional status, and ownership credentials. Authorizations are granted only to businesses that meet this particular capital requirement, occupational status and ownership credentials.   15. Is there any specific regulation over accreditation firms involved as sub-contractors in oil/gas business?   There are specific regulations over accreditation firms involved as sub-contractors in oil and gas businesses. The appointment of sub-contractors must be approved by the National Oil & Gas Authority (NOGA), with the help of Bahrain Petroleum Company (BAPCO) and even sometimes bodies like Tatweer Petroleum.    16. Are royalties paid to the Government?   There are no obligations to pay royalties to the Government, although NOGA is entitled to a percentage of the profit resulting from oil and gas operations.   17. How does the royalty process work for oil and gas?   Development and Production Sharing Agreements (the DPSA) do not include any process for paying royalties to the Government. However, the National Oil & Gas Authority (NOGA) has the authority to impose royalty requirements.    18. What are other taxes levied on the production and sale of oil and gas products?   There are no taxes on income, sales and capital gains in Bahrain unless operations relate to the oil and gas sector. The Bahrain Income Tax Law (Legislative Decree Number 22 of 1979) governs the tax system of the hydrocarbons sector. Companies involved in oil and gas operations are subject to a forty-six percent [46%] tax rate on net income.    19. Are any environmental taxes levied on the production of oil and gas products?   There are no environmental taxes on the production of oil and gas products in Bahrain.   20. How long are the licenses/concessions? Can they be renewed if so how?   The duration of a license/concession gets determined by the type of license/ grant in question. Development and Production Sharing Agreements (the DPSA) provides a twenty-year term, but the duration can reach to a maximum of thirty (30) years but this at the sole discretion of the National Oil & Gas Authority.   21.  For the offshore production of oil and gas in Bahrain, how far does the seaward regime operate?   There are no specific regulations per se that deal with the operation of seaward regimes. The National Oil and Gas Authority is however capable of introducing such regulations.   22. How is transportation regulated onshore and offshore are permits required?   There are no specific regulations about onshore and offshore transportation. Although, the National Oil and Gas Authority may enforce such regulations if they seem fit.   23. How do you obtain rights to construct pipeline or storage facilities for oil and gas?   Although there are no specific regulations concerning the construction and operation of pipelines, to obtain rights to construct pipelines or storage facilities for oil and gas, a license must first be received by the National Oil & Gas Authority.   24. Can pipeline or storage facility owners be required to allow other producers to use their facilities?   There are no specific regulations that pipeline or storage facility owners be required to allow other producers to use their facilities.   25. What specific health and safety rules apply to the industries and how actively are they monitored/violations prosecuted?   The Ministry of Labour's health and safety regulations apply to oil and gas operations. Orders Number  38 of 2014 provides that operators must regulate the use of dangerous equipment. The Industrial Safety Order sets out occupational safety regulations in Order Number 8 of 2013. The aim is to protect workers from hazardous health effects and to ensure they enjoy proper physical, mental and social health. The regulations demand that occupational safety managers be appointed and that employees get educated about the hazards of their jobs and further that proper health facilities are maintained efficiently.    26. Is certification required for specific areas of production?   Certification requirement applies for specific areas of production.    27. How does Emiratisation and preference for local workers work in the oil/gas industry?   Emiratisation is an initiative taken by the government of the United Arab Emirates to assimilate the UAE national workforce into the labor market. The concept of Emiratisation is not applicable in Bahrain, but there is a policy of giving prioritizing Bahrain nationals called Bahrainisation. The Labour Market Regulatory Authority has released a Bahrainisation table on the percentage of Bahraini citizens required to work in a company depending on the company's registered activity.   28. Do foreign workers need specific qualifications/accreditation?   Foreign workers do need specific qualifications and accreditations set out by the National Oil & Gas Authority, the Ministry of Labour and the Ministry of Industry, Commerce and Tourism. These will vary based on the activity concerned.   29.Are there specific rules governing the sale and marketing of oil and gas products produced in this jurisdiction?   Specific rules govern the sale and marketing of oil and gas products produced in the jurisdiction of Bahrain; sale and marketing licenses are granted by the National Oil and Gas Authority.    30. How does price setting operate for oil/gas sales and oil/gas distribution -­‐   are there mandatory requirements?   Prices for oil/gas sales and oil/gas distribution are regulated by the National Oil & Gas Authority.   31. Are there any specific competition rules which apply in the oil and gas sectors?   There are no specific competition rules that apply to the oil and gas sectors in Bahrain.   32. Are there any specific rules on the ownership structure of oil and gas companies?   In Bahrain, hundred percent (100%) foreign ownership is permitted for commercial activities, but the Ministry of Industry, Commerce and Tourism has imposed restrictions on foreign ownership in the oil and gas sector.   33. Does oil and gas regulation differ inside free zones?   There are no separate statutes or regulation to govern the oil and gas sector in Bahrain' free zones.   ]]>
    Thu, 04 Jan 2018 11:41:00 GMT
    <![CDATA[UAE Criminal Law and Contradictory Statements]]> Contradictory Statements

    In a bundle of truths, a lie will always be found within.

    Pinocchio told lies, and his nose grew. Unfortunately, liars in the courtroom may only be caught out by the inconsistent statements they make throughout a case. The challenge is for the jury and prosecution to find out the truth, the whole truth and nothing but the truth. The prospect of success in a court case is dependent upon the judge and jury believing the story put forward by the prosecution, beyond a reasonable doubt. To reach this decision, the jury must not doubt that the accused is guilty or not guilty. A combination of the defendant's explanation of events along with any witnesses available to testify is then put forward in front of the court for them to reach a conclusive decision as to whether the defendant is accountable.

    Legality of Contradictory Statements

    In legal terms, a contradictory statement is an incompatibility and clear opposition to two ideas which are the subject of the same proposition. Whether it be the defendant on the stand accused of a crime, providing insufficient information to what has been previously provided or if one or more witnesses reenact the chain of events that occurred, but do not portray a mirrored story, contradictory statements lead to much confusion for the judge and jury.  When a statement made has been contradicted by another in court, the jury is led to believe that all accounts made from that point onwards are false. Any evidence that would seem credible is now unreliable. A contradictory statement made in court signifies that the person making such statement has been untruthful at some point during their account.

    It is a public perception that perjury is a hard crime to prove. In most US jurisdictions, the two-witness rule is used to discover whether the accused has committed such a crime. Under the two-witness rule, it must be proven that the defendant's statements made would be contradicted by at least two witnesses. As above mentioned, the difficulty of proving a defendant has committed perjury amounts from the fact that at common law the accused cannot be convicted of perjury based only on a contradictory statement made unless it is then established by the prosecution that either of the statements made which contradict one another is false. With evidence and witness statements, once the above is proven, a successful prosecution of perjury can be brought against a person.

    The laws in place among global jurisdictions highlight the importance of witnesses, and the accused told the truth under oath in court. It is understandable for a witness that attending court is a daunting experience. The directions given by the court is to make sure that the process for a witness is as comfortable and safe as possible.

    Within court proceedings, it has not been unknown for witnesses to contradict what was originally recorded in their witness statements. As time has elapsed since the statement was written, witnesses have had the opportunity to recollect on the events they saw and question whether what they noted shown the accurate picture. The process of a witness providing the court with their account of the facts first starts with the witness documenting and signing the statement of truth to confirm what they have recorded are to their knowledge the true, accurate events that took place. If a witness is called to the stand and contradicts a statement previously made by themselves or another witness with a similar account, the testimony given is weak, leading the jury to discredit all that they have heard up to this point which may have damaging effects for the defense or prosecution.

    A contradictory statement can result in the accused being convicted of a crime they may not have committed. In the case of E v Joyce, several witnesses had identified the defendant through detailed statements and confirmed they had the correct identity of the person they saw. At the trial, the witnesses stated that they were now not certain whether their identification was correct. The trial judge admitted the earlier statements as evidence of the first identification being the accused. With this, the jury convicted the accused.

    Witness Testimony

    The strength of a witness's statement is paramount to win the case. A contradictory comment, regardless of the effect it may have on proving the defendant's guilt, will be noted.  The single purpose of cross-examination is not only to get the truth from the accused or witnesses but to decipher statements that align, against those that appear suspicious and do not match up with other evidence available to that case.  It cannot be concluded that in every instance of a contradictory statement that the witnesses or the accused is lying. Taking into consideration the complexity of each case, certain questions put forward by the defense and prosecution during cross-examination will be heard or construed differently by the person on the stand under oath.

    A witness is at a greater disadvantage to the lawyer as they approach the stand. The witnesses are not aware of documents they cross-examiner may have which directly impacts on the statement they presented. There is no preparation given to a witness. A statement is made and signed and read out again by the witness in front of the court. It is necessary that witnesses are given recognition for their ability to show their account, regardless of whether they contradict a certain event happening. In these situations, however, the opposing side take it upon themselves to highlight any contradictory statement made regardless of the sincerity behind it, to induce the jury to see that a witness is lying, therefore, their story so far is imperfect.

    The defendant enters the court followed by the misconception by the jury that they are guilty of the crime before they are given the opportunity to defend themselves. Straight contradiction implies to the court that when the accused speaks falsely about a certain point, they are speaking falsely about all points they have raised. Implications arise here as it could be perceived by the jury that the accused is self-incriminating themselves by contradicting earlier statements. Irrespective of whether the story matches other evidence presented and highlights to the jury that the defendant is innocent, a contradictory statement prompts negative reviews from the jury about that person's ability to tell the truth, the whole truth and nothing but the truth.

    Self-contradiction can be brought out by the skills used in cross-examination or from the accused's statements previously made. Statements and evidence used against the defendant create panic and can result in them then self-contradicting points they have made to explain or justify why whatever has been presented does match. As abovementioned throughout the article, contradictory statements signify to the jury who is possibly telling the truth and who is lying allowing them to reach a valid conclusion based on what they have heard on whether the accused is guilty or not.

    It seems that a contradictory statement can easily be made in court and will damage the credibility of the information put forward by the accused or the witnesses. Unfortunately, the jury does not take these statements lightly which may result in serious impacts to the case. As abovementioned in the legal definition of a contradictory statement, the information provided by the defendant or witnesses must be inconsistent with previous. The wording of inconsistent rather the use of different provides uncertainty as a mere mistake made of such an exact time something happened or the exact coloring of clothing the defendant was wearing may only be a slightly variable to what evidence or other statements display.

    ]]>
    Thu, 07 Dec 2017 06:37:00 GMT
    <![CDATA[Скорейшее уголовное правосудие в Дубае]]> Speedy Criminal Justice in Dubai

    William E. Gladstone once said in a public gathering that 'justice delayed is justice denied.' But neither the person nor the concept was new to the anxious crowd. Regarding the person, Mr. Gladstone has served as the Prime Minister of United Kingdom more times than any anyone else. And regarding the phrase, the cumbersome process and delay in obtaining judgments have been an age-old issue in the litigation arena. Both the former and the latter had an enduring effect on the minds of the crowd present at that gathering.

    Since we all know the reason of the former, let's try and understand the importance of the term 'justice delayed is justice denied.' It is not because courts do not provide equitable judgments or fail to exercise its authority to implement the rights of the people. But it is due to the time taken by the courts to pronounce these equitable judgments to enforce the rights of the citizens. Therefore, even a fair and just decision from the court may deny a party of his right due to the procedural delay in adjudication.

    A unique characteristic of the law is its ability to be general as well as abstract. Hence, the law applies to everyone without any discrimination and therefore, in legal proceedings that require the separation of the case there is no difference between a case and another unless within the law. However, the adverse effects of lengthy and multiple litigation proceedings on the status quo of the matter(s) in both civil and criminal cases are common knowledge to us.

    Criminal proceedings are extremely sensitive and affect the accused also since their freedom to travel is curtailed at the time of initiating the legal proceedings. This procedure is acceptable in certain crimes that require custody of the accused until the end of the trial, but in other minor offenses and fines, the effect of such action may be more significant than the punishment itself.

    In some cases, the accused confesses and does not need to undergo trial sessions, investigations, and other criminal proceedings for research and trial because of the simplicity of the act and the clarity of the case and its confirmation. Therefore, most of the legislation aimed at establishing a system of speedy trial for previous considerations and eliminate the punishment of the accused in minor crimes, by limiting their sanctions to fines.

    Such speedy trials are achieved through criminal orders which are drafted to ease the procedures and reduce the time taken for adjudication. Therefore, the accused is not mandated to be present for the investigation procedures and pleadings in front of the judiciary if they have confessed to the charge filed against them. Some of the countries that use criminal orders are France, Italy, Sweden, Germany, while Arabic nations are Egypt, Jordan, Syria, Iraq, Algeria, Morocco, and some Gulf countries such as Qatar, Kuwait, Oman, and Bahrain.

    What is a Criminal Order?

    A criminal order is a judicial order issued by the body specified under the law (Public Prosecution - Judge) to impose a penalty of fine on the accused of an offense, generally without following the standard prolonged procedures of final investigations and pleading. However, the UAE Federal Code of Criminal Procedure does not contain an explicit definition regarding the system of criminal orders. Therefore, in this article, we have tried to elucidate the provisions regarding criminal orders in the Emirate of Dubai.

    Following the above, the Emirate of Dubai issued Decree Number 1 of 2017 (the Law) on 30 January 2017 and published in the Official Gazette on 16 February 2017 to be implemented three (3) months after the date of its publication. The criminal order is defined in the Law as 'a judicial decision issued by the member of the Public Prosecution to determine the subject of the criminal case with a fine without referring it to the competent court.' This confers the office of the Public Prosecution with substantial authority since they are entitled to issue orders without the consent of the competent courts, who would otherwise adjudicate that particular matter. In Dubai, only the Public Prosecution has the authority to issue criminal orders, unlike some countries such as Egypt (where the order may be issued by the Public Prosecution or Judge) or Bahrain (where the judge issues the order at the request of the public prosecution).

    Objective

    The Law aims to accomplish the following objectives with the view of expediting trivial matters:-

  • ensure that the criminal action is expeditiously resolved, without prejudice to fair trial guarantees;
  • reduce the burden on the courts and reducing the number of criminal cases referred to it; and
  • respond to the process of simplifying litigation procedures and reduce time, effort and expenses of the parties in criminal matters.
  • Scope of the Law

    The scope of the Law is limited to trivial offenses such as misdemeanors and other offenses laid down by the legislative authorities from time to time. Therefore, the degree of sanctions under this Law is also considerably minor. The Law has imposed the following penalties on convicted parties in a case:

     

  • Fine(s); and
  • 'Imprisonment and fine' that the Attorney General shall determine, in a decision to be issued in this regard, on cases of misdemeanors and other offenses under the provisions of the Law. However, the provisions of this Law does not apply to the offenses of juvenile delinquents and displaced persons.
  • Under the Law, the Public Prosecution of the Emirate of Dubai may, issue a penal order against a person guilty of committing a crime by imposing a fine prescribed by law, provided this penalty does not exceed half of the maximum limit mentioned under the respective statute. The following illustration will provide more clarity in regard to the penalties: Suppose 'A' is convicted of violating Article 378 of the Penal Code that states that, 'Whoever publish(es) news, pictures or comments related to the secrets of private (or family life) of persons even if they are true, shall be punished by detention for a period not exceeding one year and by a fine not exceeding UAE Dirhams ten thousand (AED 10,000), or by one of these two penalties.' Therefore, in this case, the Public Prosecution may impose 'A' with a fine of UAE Dirhams five thousand (AED 5,000).

    The Law states that the criminal order should contain all the relevant information regarding the case, the date when the order was issued, the name of the accused, the applicable legal text and the name of the prosecutor who issued the order and its degree. Further, the Public Prosecutor may pass the order and declare the accused even in the absence of the latter. However, in all cases, the accused must be reported by the means determined by the Attorney-General in this regard.

    Can a Party Appeal to a Criminal Order?

    Parties who are aggrieved by a criminal order may file an appeal against it. However, an appeal may not lie against a criminal order in the following cases:

     

  • If the accused has not submitted an appeal (whether in person or through his appointed criminal lawyers in Dubai) within seven (7) days from the date of issuance of the order, provided the order was passed in the presence of the accused; or from the time of declaration if the defendant was not present when the order was passed.
  • if the convict pays the penalty imposed on him.
  • However, if it the objection (or appeal) is raised by the accused, on it is considered as if it didn't happen and he will continue to face the criminal proceedings in ordinary ways.

    Acting toward preserving the rights of the victim, and the compatibility between the time of issuing the criminal order and the dismissal of the civil dispute, the law further stipulates that claiming the civil right does not prevent issuing the criminal order. The penal order shall be executed by the rules prescribed in Federal Law No. (35) of 1992, and the Attorney General of the Emirate of Dubai shall issue the necessary decisions for the implementation of the provisions of this Law.

    In our view of this Law, we find that it has come to achieve its goal which is the rapid dismissal of misdemeanors and minor offenses determined by the Attorney General, a system widely established in most countries, which we hope will become implemented throughout the UAE.

     

     

    ]]>
    Thu, 19 Oct 2017 12:00:00 GMT
    <![CDATA[Mr. DEBT’s hello to Mr. DAMAGE: Case Analysis on Freight Industry]]> Mr. DEBT's hello to Mr. DAMAGE: Case Analysis on Freight Industry

    Suppose an individual has borrowed a specific sum of money against an asset of a reciprocal value as security. However, the debtor fails to fulfill his obligation; and subsequently, the creditor exercises his lien and disposes of the former's asset to retrieve the due amount. Unfortunately, the sale proceeds of the debtor's assets were not sufficient to cover his claim. Ergo, a substantial question arises as to whether the creditor would continue to have a claim against the debtor? Better yet, could one opine that the creditor would have a valid claim if the underlying issue was outstanding freight charges and not a loan and the security sold was the cargo? Let's read further to find out.

    The graceful commercial effect of globalization paved the way for various industries that were primarily intended to facilitate the process of international trade. By then, sea cargo was already a major player in the logistics supply chain employing thousands of container ships over most of the earth's waters. However, the convoluted technicalities of the industry raised substantial ambiguity in the legal relationship between the parties in a charter party agreement. Further, the complexity of the legality surrounding the industry along with the multiplicity of jurisdictions involved in a maritime dispute has led to numerous circumstances which questioned the fundamental principles of maritime jurisprudence. One such situation arose in 2016 when the Commercial Court in Singapore had to identify the characteristics of freight in the infamous case of D'Amico Shipping Italia SPA v Endofa DMCC and Another. The primary argument before the court was if outstanding freight charges in a charter-party would amount to damages or unpaid debt. This case felt the paparazzi chills due to the undeniable universal concept that awards damages to the ship owners when the other party of a charter party agreement does not pay freight charges, or demurrage. The industry was unfamiliar with this technique due to the general perception that the concept of debt would arise only when a party undertakes a monetary loan for a security of similar value. However, this case established a nexus between outstanding freight and unpaid debt by comprehending the underlying asset in both the circumstances viz. cargo and security, respectively.

    Once Upon a Time…

    The story unfolded when Endofa DMCC (the Charterer) chartered a voyage to transport a cargo of crude oil (the Cargo). The Cargo was being shipped by a third-party shipper from Ghana to Germany through a vessel owned by D'Amico Shipping Italia SPA (the Ship Owner) vide a charter party agreement (the Agreement) between the parties. The Agreement consisted of a before breaking bulk clause and provided the Ship Owner with a lien over the Cargo until all freight and demurrage charges were paid off by the Charterer and the third-party shipper. Further, the before breaking bulk clause granted the former with a right to withhold the Cargo until the time of payment of all due amounts by the other parties.

    However, things went south due to the failure of the Charterer to meet its obligations and pay the freight charges after the vessel reached its destination in Germany. The Charterer and the third-party shipper also failed to provide necessary instructions regarding the discharge of the Cargo. Therefore, the aggrieved Ship Owner decided to exercise its lien to meet the outstanding amount that arose from the Agreement. Consecutively, the Ship Owner obtained a court order and disposed of the Cargo for USD 3.2 million after a period of five (5) months. However, the tale did not end there since the sale amount did not meet the wholesome claim amount of the Ship Owner. Therefore, a suit for summary judgment was instituted by the Ship Owner with the view to obtain the balance amount in freight and demurrage from the Charterer and the third-party shipper.

    The Undeniable Characteristics of Unpaid Freight

    In this instance, the court faced with the mammoth task of determining the characteristics of outstanding freightage amount while analyzing the provisions of the Agreement. Therefore, the court had to comprehend the precise moment when the freight became due to ascertain if the balance amount could be recoverable as the outstanding debt. One might wonder, why all this hassle over a few technical terms like unpaid debt and damages when the whole debacle surrounds a charter-party dispute. Recapping to the earlier mentioned complexity surrounding charter-party agreements, it is imperative to note that mitigation is a substantial factor that the court takes into consideration while ruling a suit for damages. That means that the court would consider the measures adopted by a party to curtail the potential losses of the other party in a suit for the award of damages arising from a tort. However, this rule does not have any standing in a suit to recover debt since the burden is generally not on the creditor to minimize the debtor's losses.

    In this case, the Charterer was placed with the burden to prove that the Ship Owner was negligent in its attempt to mitigate the losses that the other parties could incur. Therefore, the Charterer argued that the freight charges were payable as damages and further would not become due until the Cargo had been discharged or was made available to them by the Ship Owner. They also contended that freight had not accrued when the vessel had reached its destination, due to a breach of the Agreement that resulted from their failure to provide necessary instructions regarding discharge. Further, the Charterer claimed that the Ship Owner had not taken appropriate measures to mitigate the potential losses that they could incur since the former had exercised its right to lien only after (5) five months from the date of arrival of the vessel. Further, the Charterer argued that the sale receipts of the Cargo would be adequate to cover the costs of freight and minimize the claim against the third-party shipper if the Ship Owner had disposed of the Cargo earlier.

    However, the court comprehended that charter-party agreements consist of tailor-made provisions such as the before breaking bulk clause and hence, should concentrate on the specific provisions of the Agreement while analyzing the characteristics of the freight involved. However, the court also took the opinion that the provisions of general law and commercial practice should also be taken into consideration while determining the payment of freight in this case. Therefore, the Commercial Court scrutinized the provisions of the Agreement and held that shipment would be due before the Cargo is ready for discharge under the Agreement. Further, the court observed that the Agreement had granted the Ship Owner the right to withhold the discharge of the Cargo unless the Charterer paid the freight amount. The court also took the opinion that the freightage would be due from the moment the Ship Owner was ready to discharge the Cargo since the Agreement had provided that the former could retain the possession of the Cargo until the other partied cleared all payments. Therefore, in the present case, the amount of freight was payable as debt since the Charterer and the third-party shipper did not pay due amounts and provide the Ship Owner with relevant information regarding the discharge of the Cargo. Further, the court also rejected the contention of the Charterer relating to the duty of the Ship Owner to mitigate a separate loss, by stating that the alleged failure of the latter to dispose of the Cargo promptly cannot be the defense to a different suit for unpaid freight.

    Conclusion

    This case is expected to establish a global standard regarding the payment of freight as an outstanding debt. Therefore, the owner of a ship would not be under the duty to minimize the losses of the other parties as long as the freight had become due by the charter-party agreement. Further, it is imperative to note that courts interpret the relationship between the parties and the characteristics of the subject matter of a maritime dispute by analyzing the ambit of the underlying charter-party agreement. Therefore, parties in the contract should scrutinize disputes relating to charter-party agreements establish a clear nexus between rights and obligations against one another. The bespoke legal advice of an international law firm with a dedicated legal team is expected to support the cause of the parties in such an agreement.

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    Wed, 27 Sep 2017 14:00:00 GMT
    <![CDATA[Tackling Post Dated Cheques in Bahrain]]> Tackling Post-dated Cheques in Bahrain

    Can an instrument of payment be offered that ensures complete safety? The reality of the latter statement is an unlikely one. The law, however, does attempt to provide security where a payment transaction fails to do so. The nooks and crevices of such law must be understood to avoid any misguided reliance's on it.

    Post-dated cheques are considered to be an instrument of security to guarantee future payments. They, however, are also used as a tool of secured future payment. As can be understood, a post-dated cheque promises payment of a specific amount at a future date, and the party can only cash the said amount on the future date. In Bahrain, there are criminal implications for issuing a post-dated cheque from an account with insufficient funds. The Criminal Court of Appeal in Bahrain has issued several judgments clarifying the risks associated when doing so.

    Law-Binding Spell

    Due to both the social and legal implications of the 'bouncing' of a post-dated cheque, beneficiaries find it favorable to rely on this type of payment transaction.  Of course, one cannot automatically assume a criminal offense will arise upon the dishonoring of a cheque, but rather one can rely on court judgments for protection as the likelihood of criminal implication is high.

    The Bahraini Criminal Court of Appeal has elucidated as to the matter of intention as seen below:

     I.          Criminal Appeal Number 5 of 2005, in session dated 17 October 2005 found that regardless of whether the cheque was issued as a security measure only, it remains a transaction of certainty that the issuer must adhere to.

    II.          Criminal Appeal Number 77 of 2006, in session dated 26 July 2006 states that assuming the cheque issuance follows the legalities of doing so, the crime of issuing a bounced post-dated cheque occurs even if the issuer is aware of the insufficient funds in their account and issues the cheque as a security method only.

    Denoting that the issuer of a post-dated cheque automatically assumes a risk and an intention to provide the money promised in the cheque regardless of whether that was their real intention.

      I.     Criminal Appeal Number 5 of 2005, in session dated 17 October 2005 states if the account of the issuer does not contain sufficient funds the crime is considered to be committed regardless of the reasoning behind it.

      II.         Criminal Appeal Number 77 of 2005, in session dated 26 July 2006 follows that an issuer of a cheque automatically assumes 'bad intention' by merely knowingly or unknowingly issuing a cheque to an account with insufficient funds.

    The decisions highlighted above follow a similar pattern of automatic risk of criminal liability regardless of intention or awareness of the crime being committed. It is enough to perform the action of issuing a post-dated cheque that will not be fulfilled at a future date to acquire liability.

    The Criminal Court of Appeal has also shed light on which instances do not qualify an issuer of a post-dated cheque safety from liability:

                 I.          Criminal Appeal Number. 59 of 2005, in session dated 15 May 2010 elucidates that a crime is still committed where there are insufficient funds in the account when the beneficiary attempts to cash the post-dated cheque even if the issuer provides the beneficiary with cash of the amount prescribed in the post-dated cheque before they cash the cheque.

                  II.          Criminal Appeal Number 77 of 2006, in session dated 26 July 2006 follows the above line of reasoning stating that if the issuer does not take back the post-dated cheque after providing the beneficiary with the prescribed amount, then they are still liable for the crime if the beneficiary attempts to cash the post-dated cheque.

    As such, these judgments provide that a defendant cannot escape liability by giving the beneficiary the amount prescribed within the cheque before the promise date. To do so, they must return the post-dated cheque to avoid liability. Otherwise, the issuer takes the risk in procuring liability regardless of the fact they had fulfilled their promise in a different manner.

                 I.          Criminal Appeal Number 59 of 2005, in session dated 15 May 2010 states that even if the date of the post-dated cheque has passed and the beneficiary raises a claim to the police after the said date, the crime will still have been committed and the issuer liable.

             II.          Criminal Appeal Number 93 of 2005, in session dated 03 July 2006 lists that an account with no funds, insufficient funds, or a frozen account that does possess sufficient funds are all types of accounts that result in the crime of a 'bounced' cheque.

    Deduction of the above follows that the law offers a wider scope of protection to a beneficiary of a post-dated cheque than it does for the issuer of one. As such although a beneficiary cannot be ensured complete safety it is fair to say that they are guaranteed sufficient safety.

    The Bahraini Court of Appeal has also issued stricter judgments in comparison to those of the UAE, such as:

    Criminal Appeal Number 59 of 2005, in session dated 15 May 2010 and Criminal Appeal Number 9 of 2006, in session dated 25 December 2006 both make clear that the law does not automatically repeal liability if the issuer of the cheque pays the promised funds to the beneficiary after the claim has been raised.

    Unlike UAE law, the waiver of the criminal complaint is not offered by Bahraini law. A claimant must choose to waive their right to the criminal complaint once payment of indebted amount occurs. If they (or; their appointed lawyers) do not decide to do so, then the right to continue the criminal complaint remains within the bounds of the law. The action of issuing a post-dated cheque with the use of an account that contains insufficient funds remains an active crime.

    Once a judgment has been issued, Article 393 of the Penal Code (Decree Number 15 of 1973) mandates a fine or a prison sentence on the accused. Social stigma and punishment are also followed as per the Law of Commerce (Decree Number 7 of 1987) in Article 491, where it states that once bad faith and crime is found, the court will order the publication of the judgments summary in one of the local newspapers. The publication will include their name, occupation, and the punishment they will endure.

    Conclusion

    What can be construed from the above judgments is the reach of the Bahraini law and its intent to implicate those who issue post-dated cheques with cash consideration. Although payment transactions are tricky, the ability to prove bad faith and ill-intention require the mere existence of an account with insufficient funds and the rest of the dominoes follow.

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    Sun, 17 Sep 2017 14:00:00 GMT
    <![CDATA[Дипломатия и Международный Суд ООН: Анализ]]> Дипломатия и Международный Суд ООН: Анализ

    (Часть I из II)

    «Мир стоит дорого. И его цена – дипломатия. Мы все можем догадываться, кто платит эту цену, но иногда не можем  себе представить ее размер.»

    Отдел международных отношений, юридическая компания STA.

    Древнейшее свидетельство дипломатических отношений относится к 1259 году до нашей эры, это были отношения между фараонами Египта и правителями Хеттской империи (частью современной Турции). Египетско-хеттский мирный договор является свидетельством древнего дипломатического соглашения, разработанного для прекращения войны между двумя государствами под юрисдикцией восточного Средиземноморья. Договор был результатом войны в городе Кадеш, развязанной из-за попытки вторжения египетских воинов для получения контроля над землями. Однако могучая хеттская армия сопротивлялась нападению, и две империи сражались долгие годы. Признав, что перо сильнее меча, посредники (сегодняшние дипломаты) обоих государств начали переговоры о возможности заключения мира. Таким образом, первый мировой дипломатический договор вступил в силу между государствами даже без личной встречи обоих монархов. Спустя века страны по-прежнему используют посредников (дипломатов) для ведения переговоров и заключения договоров с целью обеспечения мира.

    Поэтому многие страны ратифицировали Венскую Конвенцию о Дипломатических Отношениях 1961 года (Договор о Дипломатических Отношениях) и Венскую Конвенцию о Консульских Отношениях 1963 года (Договор о Консульских Отношениях) в целях обеспечения данными посредниками более высокого уровня защиты при ведении переговоров с другими странами. С тем же намерением (обеспечение мира), Организация Объединенных Наций учредила в 1945 году Международный Суд (МС) для решения правовых вопросов между государствами современного мира. Но с течением времени как Договор, так и Международный Суд столкнулись с определенными трудностями в отношении их преобладания над внутренним законодательством и юрисдикции последнего.

    Вокруг Света 

    Мировые войны и последовавшая за ними холодная война научили правительства всего мира вопросам о войне и дипломатии больше, чем когда-либо прежде. Да, я упоминаю войну и дипломатию в одном контексте. Хотя государства использовали свои методы дипломатии как средства для прекращения конфликта (-ов) с 1259 года до н.э., они склонны воспринимать дипломатию других стран как оружие для получения преимуществ. Но позволяет ли это им реализовывать свое внутреннее законодательство в отношении иностранных дипломатов? Хотелось бы надеяться, что читатель к концу статьи сможет сформировать собственное непредвзятое мнение по данному риторическому вопросу.

    В 1979 году посольство Соединенных Штатов (США) в Тегеране, Иран, подверглось нападению со стороны вооруженной толпы иранцев, которая задержала дипломатов и захватила офисы дипломатического представительства. Впоследствии Государственный Департамент США возбудил судебные иски против Исламской Республики Иран в Международном Суде. Основными утверждениями США в данном случае было то, что Иран нарушил договор о дипломатических отношениях, и что правительство Ирана было обязано обеспечить освобождение всех задержанных граждан США. Кроме того, поддержка, оказанная правительством Ирана обвиняемым боевикам, также была тщательно изучена в связи с неспособностью последнего обеспечить безопасность дипломатической миссии США и ее дипломатам.  

    Тщательно изучив рассматриваемые вопросы, суд постановил, что: (i) Иран явно нарушает свои обязательства перед США; (ii) Иран несет ответственность за эти нарушения; (iii) правительство Ирана должно освободить граждан США, которые содержатся под стражей и передать руководство посольством США защищающей стороне; (iv) Американские дипломаты и работники посольства не должны подвергаться судебному разбирательству в Иране; и (v) Иран должен выплатить компенсацию США в отношении причиненных травм и ущерба. Этот вопрос находился в центре глобального внимания, главным образом, из-за двух (2) причин: (i) более шестидесяти (60) американских дипломатов были незаконно задержаны боевиками более, чем на 444 дня; и (ii) Иранское правительство (которое обязано защищать посольство) даже не подавало заявление в Международный Суд.

    Как видно из вышеприведенного случая, страны часто готовы нанести ответный удар странам относительно возникающих между ними вопросов путем использования внутреннего законодательства или путем неспособности защитить граждан, назначенных нести дипломатическую миссию.

    Следовательно, основной вопрос, который возникает в этом отношении, касается  действительности международного публичного права над внутренним режимом государства. И в частности, степень власти, которую государство может осуществлять над дипломатами или консульскими учреждениями иностранного государства, находящимися на официальном посту государства. Однако национальные суды несут ответственность за преследование тех, кто нарушает эти международные нормы. Следовательно, конфликт интересов может возникнуть между страной (которая стремится обеспечить соблюдение своих внутренних законов для дипломата) и международным сообществом, поскольку международное общее право предусматривает соблюдение этих законов национальными судами государств. Хотя данная платформа (местные суды) зачастую пренебрегают международными законами и не преследуют в судебном порядке тех, кто нарушает международные законы или права человека, ответчиком(-ами) в этих случаях являются правительства самих государств. Поэтому очевидно, что эти внутренние суды могут применять свои местные законы, чтобы избежать юрисдикции международного права, находя лазейку и отвергая применение международного права.

    Однако, официальные дипломаты – это не единственные стороны, имеющие такой уровень защиты. Поскольку, если бы это было так, то правительству было бы разрешено осуществлять любую форму необоснованной юрисдикции в отношении иностранного гражданина, который находится в их юрисдикции. В этой связи дело «Диалло» стало знаковым постановлением Международного Суда относительно масштабов дипломатического иммунитета, который может быть предоставлен не-дипломатам и консульским работникам. В данном случае господин Ахмаду Садио Диалло являлся гражданином Гвинеи и был совладельцем общества с ограниченной ответственностью (Компании) в Демократической Республике Конго (Конго). В 1980-х годах Компания инициировала судебные иски против различных местных государственных и частных компаний, которые в ходе своей деятельности задолжали Компании значительные суммы денег. Однако через несколько лет Правительство Заира приговорило г-на Диалло к депортации из страны с связи с нарушениями в экономических, финансовых и денежных секторах. После этого он был арестован и задержан властями в течение шестидесяти шести дней (без надлежащей правовой процедуры) до депортации в Гвинею. Кроме того, правительство Конго присвоило имущество г-на Диалло и отказало ему в будущих въездах в страну (что является не подлежащим обжалованию постановлением в законодательстве Конго).

    Впоследствии пострадавший г-н Диалло сообщил о произошедшем  гвинейским властям, которые позднее возбудили иски против Конго, поскольку государства обладают дискреционным правом защищать своих граждан от необоснованного нападения в зарубежных странах, предоставляя им дипломатическую защиту. Поэтому представители Гвинейской Республики возбудили в Международном Суде иск против Конго. Это в глобальном масштабе усугубило уже существующий вопрос о распространении средств дипломатической защиты на физических и юридических лиц, как видно из постановления Международного Суда по делу «Барселона Тракшн». Гвинея утверждала, что г-ну Диалло следует предоставить дипломатическую защиту, заявив, что он: (i) лицо, которое было жертвой задержания и неоправданной депортации; (ii) акционером компании, имеющим право защищать свои интересы; (iii) акционером и менеджером, обязанным защищать права компании. Республика Гвинея потребовала возмещения всех убытков, понесенных г-ном Диалло и Гвинеей. Однако ответчики выступили с заявлением, что Республика Гвинея не может наделить г-на Диалло дипломатическим иммунитетом, поскольку компании не были созданы в Гвинее. Они также заявили, что г-н Диалло не исчерпал все средства правовой защиты, которые были ему доступны в самом Конго. Приняв факты и споры по этому делу, Международный Суд в своем предварительном решении заявил, что г-н Диалло действительно не исчерпал все доступные ему внутренние средства правовой защиты. Однако данное решение не подтвердилось после анализа уведомления о депортации, которое являлось не подлежащим обжалованию. Кроме того, Международный Суд также заявил, что эти компании имеют Конголезское гражданство, и поэтому Гвинея не может ссылаться на дипломатическую защиту путем субституции. Тем не менее, суд оставил в силе требование Гвинеи ссылаться на дипломатическую защиту г-на Диалло как личности и его прямое право в качестве акционера.

    В 2010 году Международный Суд принял решение по существу дела и заявил, что Конго нарушает Международный Пакт о Гражданских и Политических Правах (статьи 9 и 13), Договор о Консульских Отношениях и Африканскую Хартию о Правах Человека и Народов (Статьи 6 и 12(4)). Однако суд постановил, что Конго напрямую не нарушало права г-на Диалло в качестве акционера, поскольку он имел право присутствовать на общих собраниях и контролировать управление компаниями. Кроме того, в решении Международного Суда 19 июня 2012 года суд отметил, что Гвинея не смогла обосновать свои претензии доказательствами относительно потери материальных и нематериальных активов из-за депортации. Поэтому суд присудил сумму в размере 85,000 долларов США в отношении задержания и высылки г-на Диалло из страны. Этот случай рассматривается как знаковое решение, поскольку он нам дает представление о степени дипломатической защиты, которую страна может предоставить своим гражданам.

    Заключение

    Международный Суд создан для обеспечения защиты населения, будь то дипломатов или физических лиц, в странах, где они являются иностранцами. Однако, вполне понятно, что в битве национального и международного права существует проблема вынесения справедливого решения. Невозможно обеспечить равную степень защиты сторон, когда каждой более выгоден другой закон. Непростой характер предмета привел к множеству случаев, когда международное право игнорируется в ходе защиты более сильной стороны. Тем не менее, наш анализ на этом не заканчивается; во второй части данной статьи будут рассмотрены процедурные аспекты дел в Международном Суде и другие соответствующие процессы.


    [i] United States of America v. Iran; [1980] ICJ 1

    [ii]{C}{C}{C}{C}{C}{C}{C}{C} Reports of Judgments, Advisory Opinions and Orders, 24 May, 1980 (found at http://www.icj-cij.org/docket/files/64/6291.pdf)

    [iii] Republic of Guinea v. Democratic Republic of Congo, ICJ, 2007

    [iv] Also, known as Congo (between 1960 to 1971) and Zaire (between 1971 to 1997).

    [v] [1970] ICJ 1

    [vi] Judgment on Preliminary Objections on 24 May, 2007

     

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    Sat, 16 Sep 2017 01:31:00 GMT
    <![CDATA[Посадка завершена: исламский рендеринг (часть 1 из 2)]]> Boarding Complete: An Islamic Rendering

    Part I of II

    Islamic Principles not only lay guidance on the relationship between man and God but also provide directives on a system of transactions for dealings between man and man to lead a life in an Islamic way. Such Islamic jurisprudence referred to as "Shariah, " and commercial or banking transaction forms a small but very crucial part of Shariah. Many financial institutions in Muslim states have Shariah boards, religious advisors or such experts to advise on the compliance of transactions with Shariah. It is pertinent to note that Shariah law is not codified law but based on interpretations of holy Quran, and therefore it can be applied differently in different states to extend the interpretations as they differ based on the four major schools{C}{C}{C}[1]{C}{C}{C}. However, in general, major principles such as the prohibition of riba (meaning an excess which is the ban of interest in commercial business transactions), maisir (speculation or gambling), gharar (unjust enrichment or unfair advancement based on uncertainty or upon the occurrence of events) are commonly applicable to major schools.

    Conventional financing methods and instruments are mostly based on interest structure whereas Islamic finance techniques must comply with Shariah bans levying of interest. The latter does not mean that Shariah prohibits making profits. Rather, the system scrutinizes the basis of making said profits as charging interest is harmful to borrowers. Wherein, although there is a lack of effort by the financier they will still enjoy profits. Such deliberations lead Islamic scholars to establish Islamic financial instruments and techniques to prevent the commission of sin for prohibited acts as per the Quran and Sunna

    Ijara is one such Islamic financial leasing principle gaining momentum in the UK, France, Canada and other parts of the world. The use of Islamic financial leasing has changed from an interpretation of leasing for household or daily use necessities to large construction and leasing transactions of substantial assets such as aircraft's and vessels. Before venturing further into the use of Islamic financial leasing transaction for aircraft financing, we would like to elucidate to our readers about the concepts of ijara (Islamic financial leasing) and related Islamic financial instruments that can be utilized while structuring the Islamic leasing transaction.

    Ijara

    Ijara means providing services or goods on a temporary basis for rental. Including the leasing of equipment, machinery, or other capital assets. There are three types of ijara used in Islamic contracts. They are ijara (operating lease), ijara wa iqtina or ijara muntahia bittamleek (finance lease) and ijara mawsoofa bil thimma (Forward lease).

    Simple Ijara

    In ijara, a lessee is given right to use the object leased for a specified period, and the lessor retains ownership. The Islamic financial institution/bank will purchase the asset in question and will lease or make available to its customer the use or occupation and possession of assets for a fixed period and price. The premiums will be payable by the bank regardless of their recovery through rentals. This type of leasing is called operating lease. The lessor is responsible for the insurance, registration, and maintenance of the asset leased as it is under the ownership of lessor. Federal Law Number 5 of 1985 (UAE Civil Code) defines the ijara as - "a hire (that shall be conferred) by the lessor on the lessee of the right to use (that is) intended for the thing hired for a (given) period in consideration of an ascertained rent."

    Ijara in the above form is similar to a conventional lease. Wherein, the entire cost of assets is not recovered by the lessor, and the payments are made only up to the period of lease for its use irrespective of the total value of an asset. 

    Ijara wa iqtina

    The other form of leasing under Islamic finance is ijara wa iqtina. This is a finance lease, asset finance, or hire purchase as provided under the ijara wa iqtina principle. Wherein a leasing structure is coupled with a right to buy the asset by the lessee at the end of the lease period at an agreed price. The lease fees are considered to be previously paid and constitute part of the price or consideration for the purpose of sale. The payment made by the lessee is towards the purchase of an asset with any profits as stated by the lessor. A variety of cross-border transactions often use such instruments for a range of asset categories that include aircraft, heavy equipment, vessels, and other assets.

    Under ijara, the lessor retains the right to re-negotiate the quantum of the lease amount payable at every agreed interval as that would ensure that the rental amount agrees with the market value of the asset. The uncertainty of price to be paid at the end of the lease period for purchase is not acceptable under ijara for reason of uncertainty and applicability of gharar, and hence another contract under ijara wa iqtina is to be made for the sale of the leased asset. In this form of lease, recovery of the full cost and value of the asset by the lessor from the lessee takes place, and the lessee does not have an option to cancel until the lessor receives compensation for such an asset. The option to buy is usually granted at the end of the lease contract period to make up for the lessor allowing them to recover the remainder value of the asset. 

    Ijara mawsufah fi al dimmah

    In UAE, ijara has often been linked to the real property transaction where banks enter into a forward lease agreement to finance its client's property. Ijara mawsufah fi al dimmah is a combination of a redeemable leasing agreement and construction finance (Istisna'a). In forward leasing, the lease delivers of specified items after their construction. These lease contracts buy out the construction project as a whole upon its completion or in tranches of the project.

    The forward lease entails an agreement to lease assets upon the construction, manufacturing, and availability at a future date of such assets. Since forward ijara or ijara mawsufah fi al dimmah is a combination of ijara and Istisna'a, the understanding of the term Istisna'a is essential. 

    Istisna'a

    Istisna'a means asking someone to manufacture. It is a form of sale and purchase agreement between bank as seller and customer as a purchaser. The seller can produce by itself or get its products manufactured by someone else. The financier usually acting as a seller will get it manufactured and then take over the title of the goods to sell it further to a customer. It is an exception to the general rule that the asset that is the subject matter of the contract is in existence when the parties enter into the contract.

    The financier funds the manufacturer during the construction and acquires title over such asset on completion. Because Istisna'a is a sale and purchase agreement, the purchase price must be a fixed price. The financier sells an asset to the customer for an agreed upon price and through settlement whether in advance, by installments, or by deferred payments to a specific future date or event. Since the tenure of construction completion in large projects is time-consuming taking years to complete, it becomes unattractive for financiers, and hence it is coupled with ijara. The process stated below describes what takes place once the Istisna'a is combined with ijara thereby forming ijara mawsufah fi al dimmah.

    How does ijara mawsufah fi al dimmah works?

    The asset, which does not exist at the time of signing the forward ijara contract may be acquired by the financier (F) under an Istisna'a contract between the financier and the developer/ contractors/ manufacturer (M). Upon completion and the end of the construction period, delivery of the asset to the customer (C) as per the terms of the lease agreement occurs. At the end of the lease term (i.e. on maturity) and upon meeting all obligations under the forward ijara contract, the bank under a separate sale contract will transfer to the customer the ownership of the property for a token sale price. Upon performance of the agreement of Istisna'a between F and M, a different contract of lease between F and C can be performed, that is the forward lease of goods manufactured. In ancient times such kinds of lease contracts were carried out for unripened food items however it has been transformed to suit and utilization by major construction contracts (muqawala).

    The financier's funds the manufacturer for the construction of assets, acquires title over the asset upon completion and passes title to the developer or contractor or customer on agreed deferred payment terms or may lease the asset to the developer or customer under ijara wa Iqtina. In the aircraft financing, the utilization of this method occurs in instances where the aircraft is purchased right from the manufacturer, and the financing takes place only before completion of the aircraft.

    Conclusion

    Part 2 of this article will continue to analyze Islamic finance leasing under the umbrella of aircraft finance. The topics of discussion will include, sukuk, murabaha, mudarabah, and finally with an application of the discussed principles how Islamic finance leasing works for aircraft finance.


    [1]{C}{C}{C} The Quran is the primary source, and it is accompanied and interpreted by the Sunna. In addition to the secondary sources include Ijma, Qiyas, and Ijtihad represent the secondary sources

     

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    Thu, 24 Aug 2017 12:00:00 GMT
    <![CDATA[Too Much of FATCA]]> Too Much of FATCA!

    Renowned author and entrepreneur, Mark Twain, once said, 'tax is a fine for doing well; whereas, a fine is a tax for doing wrong.' Now, the question on hand is which one of the two the Foreign Account Tax Compliance Act (the FATCA) would get unseated! Is it a tax or a fine? Let's read further to find out.

    The FATCA promulgated on March 18, 2010. It was introduced in line with the Hiring Incentives to Restore Employment (HIRE) Act, and the then President Barack Obama signed FATCA into law to help the United States Government, through the Internal Revenue Service (IRS), curb tax avoidance by US citizens and entities on assets held in offshore accounts. FATCA is a comprehensive, and complex arrangement of tenets intended to impose tax compliance upon American citizen regarding assets outside the United States and such citizens are required to report such assets to IRS. Importantly, also, foreign financial institutions are also obliged to comply with the reporting requirements under which these financial institutions have to provide information and details to IRS about the accounts held by such US citizens or non-US entities in which US citizens hold significant ownership.

    The Why

    As outlined above, the intention of the US government to enact FATCA was to increase transparency for IRS to counter tax evasion by U.S. persons holding investments in offshore accounts. FATCA is a tool to keep a check on US persons who may be investing and earning income through non-US financial entities. FATCA mandates U.S. 'persons' holding foreign financial assets with an aggregate value exceeding US$ 50,000 (US Dollars fifty thousand) to report essential information about those assets on Form 8938. This Form 8938 will be attached and annexed to the taxpayer's annual tax return.  The disclosure requirement mandates taxpayers to report assets held in taxable years commencing after 18 March 2010.  For a majority of taxpayers, this disclosure will be the year 2011 tax return which they file in the 2012 tax filing year.  Failure by taxpayers to report foreign financial assets on Form 8938 will attract a penalty of $10,000 (and this may be raised up to $50,000 for continued noncompliance after IRS issues notification to the defaulting taxpayer(s)).  In cases where IRS notices any underpayment of tax payable on non-disclosed financial assets held by taxpayer overseas, an additional penalty of 40 percent will trigger.[i]

    Importantly, the term 'U.S. Persons' is a broad category which includes citizens of United States, those residing within the US, holders of US green cards and trusts that are controlled by US Persons. IRS has also set extensive norms, and criteria for banks (domestically as well as overseas) wherein the banking machinery will be required to screen each and all client(s) to determine whether such person(s) falls within the definition of US Person. Foreign entities will get classified as either Foreign Financial Institutions (FFI) or Non-Financial Foreign Entities, and such entities will have to comply with FATCA reporting rules.[ii]

    FATCA mandates compliance by US citizens and entities in the following methods:

           i.          Direct Agreements – agreements between the parties and IRS for compliance purposes; or

          ii.          Inter-Governmental Agreements (IGAs) – agreements between various jurisdictions and the US.

    In the case of the latter, financial institutions in the jurisdictions that have an underlying IGA with the US are mandated to submit the disclosure information to the tax authorities of their respective jurisdictions. The domestic tax authorities would then send the information to the US Treasury to comply with the provisions of their IGA.

    However, it's easier said than done! The demanding role of FATCA compliance primarily revolves around the sanctions that would apply on FFIs that are in breach of compliance with the reporting requirements and disclosures of FATCA. Non-compliant FFIs would have to pay a penalty of 30% of withholding tax on all US-sourced payments.

    Further, taxpayers benefitted from IGA during the period in which their government tries to implement the same with the US government. However, this policy of the IRS got revoked on 29 July 2016 on the basis that the Department of Treasury would implement a new list of jurisdictions that had valid IGAs with the US and subsequently, discard jurisdictions that had not yet implemented the same. Therefore, governments can avoid removal from the list by submitting an explanation as to the reasons why they have not implemented the IGA along with a process detailing how the jurisdiction will enforce the IGA in this regard. Subsequently, the Department of Treasury will not strike out the name of that particular country if convinced that the particular jurisdiction has demonstrated a 'firm resolve' to implement the IGA. Although, notably, the name of the country may, later on, be removed from the list if they fail to adhere to the norms and timeline which was set out in its explanatory submission to the Treasury.[iii]

    Hence, any FFI failing to comply with the above-said provisions of the FATCA will result in FFI paying a withholding tax of 30% of its payments received from a US source. The next cardinal question that arises in this subject is regarding the ambit of the 'US-source payments.' This scope gets further elucidated with the help of the following instance: US-source payments is set to cover all payments to the non-compliant FFI from a US source such as principal amounts that mature from corporate or government bonds, dividend received from US entities and the like. This element is considered to be a bane in the financial industry since US stocks and bonds have a significant part to plan in the globe's financial sector.

    The When, Where and How

    The sanction of imposing a withholding tax amounting to 30% of all US-source payments came into effect on January 1, 2014. To the awe of global economy, gross proceeds that arose from the sale of a US security also came under the scrutiny of this worldwide tax imposition in January 2015. However, the withholding of tax on foreign pass-through payments by FFIs was delayed to 1 January 2017.[iv]

    The implementation of the FATCA has proved to be an effective method to suppress the actions of US person who yearned to evade their tax liability by transferring or using financial institutions located outside the US. However, it has also given rise to various issues regarding the implementation procedures that ought to be followed by the US.

    The primary concern with the implementation of FATCA surrounds the compliance issues of domestic financial institutions in a broad range of matters including data and consumer protection, anti-discrimination statutes and the earlier withholding tax law of the US. Numerous countries had explicitly made their concern regarding FATCA compliance to be in direct conflict with the data protection and privacy laws that are already in place either in their domestic jurisdictions or in the US itself.

    However, this is only the commencement of the large list of issues that pose to oppose the implementation of FATCA. The overall cost of implementing the law is also expected to outrun the anticipated revenue that it is likely to rise.  Further, the rationale behind compelling foreign institutions and governments to gather information regarding US citizens and entities solely to transmit them back to the US Government resulted in reactions from financial pundits, some of whom cited this as a 'decisive' action.  This rationale may also give rise to a predicament whereby foreign institutions and banks may deny US citizens and entities from opening banks accounts at their respective establishments.  Another crucial aspect of this issue is the increase in the number of US citizens who are willing to surrender their citizenship due to the mandatory compliance conferred upon them.[v]

    Further, the model IGA also mandates a mutual transfer of information from the US Government to the governments of other jurisdictions. However, the significant concern with this provision arises because there does not exist a specific US statute or regulation that permits such reciprocity. The rise in scrutiny regarding the legal validity of FATCA has also stirred controversies and questions in countries such as Canada and Israel; however, the high court of the latter jurisdiction confirmed and permitted the compliance requirements of FATCA subsequently.

    Conclusion

    The implementation of FATCA is considered to be advancing expediently, although, numerous nations have contended the global impact of the compliance requirements that arise due to FATCA. Certain jurisdictions such as the United Arab Emirates which have been generic tax havens have also conformed to the requirements of FATCA due to the financial havoc that non-compliance of the statute may create on a domestic level. This conformity is because a 30% withholding tax by the US Government is a fatal step than conforming themselves to the statute.

    The FATCA is expected to close the loopholes and tax evasion schemes used by US citizens and entities with the view of substantially increasing the tax receipts over time since; the implementation is only a one-time process; whereas, the revenue receipts may not stop flowing in!


    [i] https://www.irs.gov/businesses/corporations/summary-of-key-fatca-provisions

    [ii] David Kuenzi, "What is FATCA? What do American Investors need to know?", Thun Financial Advisors, 2017.

    [iii] Ramon Camacho, Ben Wasmuth, "Intergovernmental agreements must be in force by Jan. 1, 2017", Tax Alert, August 2, 2016.

    [iv] S. Bruce Hiran, "Overview of FATCA," Tax analysts, August 29, 2016.

    [v] "5.5 Million Americans Eye Giving Up U.S. Citizenship, Survey Reveals", Wood., Forbes, October 27, 2014.

     

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    Wed, 19 Jul 2017 19:00:00 GMT
    <![CDATA[Palpable Payments]]> Palpable Payments

    'Oh, no. It costs a lot more than your (own) life. To murder innocent people?'

    -Suzanne Collins

    This article was authored by Reem Ali, Abdel Ghany and George SK

    Although globalization is advancing at the seams of the 21st century, it remains unclear as to when will the legal systems across the world harmonize. The differing principles, customs, and their applications are ones that scholars attempt to understand by interlacing them. But not all policies and sources can be interpreted similarly. Some systems, such as Shariah law, have legal mechanisms that diminish both consequences and responsibility if seen through a secular lens. So, would it be daring to say that man has evaded a death penalty and received a profoundly minimized consequence of a crime such as murder, after raping and killing his daughter by paying her mother SR 300,000 (USD 79,990)?

    It may quite be surprising to some that the Islamic legal framework allows diya which some refer to as blood money. The payment of diya allows an offender to compensate a victim's heirs or family for the violent and heinous crime they had committed. It also provides the offender relief from retaliation. Some legal scholars have compared diya to 'clemency' a form of pardoning that secular legal systems implement and the international law recognizes. However, for the sake of technicality and clarity, we must distinguish between what is recognized by international law as a pardoning mechanism and the reality of what Shariah law permits.

    Blood Flow - Cash Flow

    There are three differing categories of crimes that can be committed under Islamic Jurisprudence. The one to be discussed in our article is qisas. It broadly covers criminal acts such as intentional killings-murders, accidental or unintentional killings, and non-fatal bodily injuries. Shariah law punishes those who commit qisas through the death penalty or the payment of diya. In the United Arab Emirates, Federal Law No.3 of 1987 On the Promulgation of the Penal Code separates 'intentional killing' and 'unintentional killing.[i] Article 28 classifies 'intentional killing' as felonies punished by qisas of which the punishments include the death penalty, life imprisonment, or temporary imprisonment.[ii] In such a case diya can only be awarded if the family or heirs agree to grant it. However, Article 29 describes 'unintentional killing' as misdemeanors where diya is a punishment that can be awarded by the Court as per Article 29(3) (while the death penalty is a viable punishment).[iii] Other misdemeanor sentences include a fine exceeding 1,000 UAE Dirhams or temporary imprisonment. Here the law specifically mandates the application of the Shariah law.

    In an application of law discussed above, the Dubai Court of Appeal has sentenced the doctor, cook, and restaurant supervisor that caused the unintentional death of Nathan and Chelsea D'Souza by food poisoning to jointly pay UAE Dirhams 4000,000 as a diya payment. Also, each offender was fined to pay UAE Dirhams 20,000. As stated above, this offense was considered to be a misdemeanor of which the qisas punishment of a death penalty is not an option as per Article 29 of Federal Law Number 3 of 1987.

    As the decision calling for a contribution of diya payment is in the hands of the victim's family and heirs, one could perceive it as a non-judicial grant. However, as will be discussed later, this raises to question whether the practice of giving diya payments contravenes international human rights law.

    The thirteen jurisdictions that currently practice diya are Saudi Arabia, Bahrain, UAE, Kuwait, Libya, Jordan, Yemen, Iran, Sudan, Nigeria, Somalia, Afghanistan, Jordan, and Pakistan. With such practice comes the requirement of understanding not only the traditional fabric within which the Shariah law operates; but also the traditions of each country and their colonial influences. Following such, although the victim's families or heirs have the right to choose whether diya payment will be granted some governments also encourage it. The offender may also still face a prison sentence even in matters where the offender has settled diya payments.

    Pakistani application of the Shariah principle can be seen in PLD 2015 Supreme Court 77 (Criminal Appeal Number 126 of 2012) Zahid Rehman Vs State (Criminal Petition Number 568 of 2011):[iv]

    Referring to Section 302 (1), Section 304, and Section 306, to 308 of Pakistan Penal Code, the Courts held that "this intentional murder was not liable to qisas. Section 299 (K) of Pakistan Penal Code defines "qisas" as 'punishment by causing similar hurt in:-

    • the same part of the (victim's) body of the convict as he had caused to the victim or;
    •  by causing his death if he had committed intentional murder, in the exercise of the right of the victim or a wali (family or heir of the victim).

    The word qisas meant "return of evil for, evil" and it also meant "retaliation." The court further held that punishment of "qisas" left no room for 'tazir' punishment (a lesser category of a crime worthy of punishment under Shariah law) to be included and concluded that if the offender is not liable to tazir, then he would only be liable to diya. The courts also relied on Muhammad Akram vs the State (2003 SCMR 855)[v] and held that (if tazir were to be considered in deciding on qisas) such interpretation would result in granting a license to parents or guardians to kill innocent persons within their families.

    Each diya implementing state decides the amount of diya payment differently. In Saudi Arabia and Pakistan, the diya amount is determined by the Shariah Judge. While in the United Arab Emirates the government negotiates with the family or heirs on behalf of the offender. In Iran, the amount of diya gets negotiated between the family or heirs and the offender. What may surprise more, is that it is permissible for the families or heirs to decline the payment of diya in its entirety and instead grant a pardon (known as afw) as an act of compassionate religious charity allowing the offender to evade any and all punishment or only a lesser sentence. The scope of afw is, however, one separate from diya.So, if we take what has been outlined above as a basic understanding of diya, it is evident that diya does not fit neatly into the boxes of clemency as understood by secular law systems. The United States of America defines clemency as the conversion of a death sentence into a lesser order of imprisonment. However international law would find clemency synonymous to commutation. Commutation is the substitution of a court-imposed punishment to a minor correction. This rule could apply to any prison sentence and would not be limited to qisas. Further, unlike diya, clemency would be a power possessed by an executive and as such gets witnessed as a power related to the principle of sovereignty. Such an executive may be the head of state, a government minister, or a pardons board.

    Over-Empowered

    The main difference mentioned above is the crux of the inadequacy of comparison. The power held by a private citizen to decide whether an offender should receive a form of pardon such as diya is one that opposes fundamental principles of secular legal systems. As such, diya cannot get classified as a pure form of clemency. Not only does the power to grant clemency come from the executive but some Shariah implementing countries also retain the option to grant clemency and pardon in murder compensation regardless of whether diya gets refused or granted. The application of diya is also more prevalent than the claim for clemency. This aspect then boils down to where the power to award lies. As private citizens can decide to grant diya more readily than the political and legal process, an executive must adhere to reach a decision of granting clemency.

    However, it is understandable to note the similarities that allow legal scholars to combine the two principles under one umbrella. In both cases, the power lies outside the scope of the judiciary. Regardless of such, both are within the legal framework of their respective systems and are authorized by the legislative. Further, the decision regarding the guilt of an offender remains within the ambit of the court's judiciary, and both diya and clemency relate to the reduction of punishment only after this decision gets established. Finally, as the granting of both is outside the scope of the judiciary, allowing a grant raise a question as to whether in doing so the authority of the courts gets subverted when involving and imposing non-judicial decision as punishment or retribution.

    What we would like to put forward is the necessity of a new theoretical paradigm that allows legal scholars to develop their understanding of diya outside the walls of clemency. As shown above and as will be discussed below, diya is subject to its principles and legal framework that is not compliant with a secular legal system. As it resolves disputes between individuals under the territory of criminal law, it can classify as a union of criminal and civil law. This union may be the beginning of the introduction of a new theoretical paradigm.

    Also, when in association and through the interpretation of clemency, diya is given a defense regardless of the possibility of it contravening international human rights law. Article 6(4) of the International Covenant on Civil or Political Rights gives prisoners the right to seek commutation or pardon. This rule gets unjustly inhibited by the practice of diya. Those with limited financial resources, of a young age, bereft, and ordinary prisoners, foreigners, or without ties to the locals have their right to pardon diminished or stripped away. Further, the power to forgive is a substantial power and granting such power to the family or heirs of a murder victim is the issue. Families or heirs are often emotionally and financially invested in their decision to grant or refuse diya. There is an inadequate level of detachment that exists and which is necessary and gets on the surface upon implementation of clemency.

    So, should the relocation of pardoning to a private individual who lacks the level authority an executive possess be allowed?

    Conclusion

    Although the borders of both diya and clemency may appear to be similar, what covers within their substantive boxes differ. In understanding the principle of diya, legal scholars may look to clemency to provide a basic footing but will be required to delve into the technicalities of the diya principles through a different lens. Moreover, the diya principle's root of Islamic jurisprudence results in the questioning of whether it is compatible with international human rights law. Unlike clemency which is granted through political and judicial checks and applies the doctrines of sovereignty and separation of powers, diya has no legal implications.


     Federal Law No.3 of 1987 On the Promulgation of the Penal Code

     ni Article 28

     ni Article 29(3)

     PLD 2015 Supreme Court 77 (Criminal Appeal Number 126 of 2012) Zahid Rehman Vs State (Criminal Petition Number 568 of 2011):[iv]

    The courts also relied on Muhammad Akram vs the State (2003 SCMR 855)

     

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    Fri, 14 Jul 2017 18:00:00 GMT
    <![CDATA[The Prenup to Every Merger and Acquisition]]>  

    The word 'efficiency' may not mean much for those of you who were absent during economics class in school. It is a term around which the whole concept of economic studies in based. Investopedia[i] defines 'efficiency' as the allocation of resources in an optimal manner to serve a company or an individual in the best method by reducing waste. It is the concept of getting work done with the least amount of resources. But that comes at a cost. Many a time, companies try to reduce their costs and maximize profits by employing cheaper materials and inefficient human resources. Companies also try to maintain or increase the level or standard of their output by pooling their resources. While the former is one of the least preferred methods to obtain efficiency, the latter has gained popularity due to the enhancement of corporate structures and growing consumer demands. But efficiency is a million-dollar word.

    A similar story lies behind one of the largest mergers in history between Henry J. Heinz Company and Kraft Foods Group, Incorporation. This merger created one of the major players in the food and beverages industry. Ergo, companies should review every aspect, factor and underlying right(s) of all the parties before initiating a merger or restructuring a corporate structure. The structure and type of merger may primarily depend upon the industry and the size of the companies. For example, when the investor limits the transaction to the assets of another company; such an acquisition is an asset purchase. However, when the investors are interested in buying the shares of the other company, the structure of the merger should be remolded to that of a share acquisition. Hence, it is evident that the structure and type of merger or acquisition are decided upon after considering and understanding the factors involved, the extent of assets and liabilities of the companies and the jurisdiction of the parties. Therefore, the benefit of opting for a particular structure or type of merger may be detrimental to the other party. Therefore, this article seeks to draw a line between an asset sale and share purchase and explain about the advantages and disadvantages of both these structures from the purview of private companies in the United Arab Emirates (UAE).

    Status quo in the UAE

    The principles of contracts govern the mergers and acquisitions in the UAE. The primary piece of legislation that has laid down the provisions regarding the matter is Federal Law Number (2) of 2015 on Commercial Companies (the Companies Law). Article 22 of the Companies Law has stated that a UAE national should hold at least fifty-one (51%) shares of an onshore company in the UAE should be and branch offices of foreign entities in the UAE may appoint a local agent to conduct trade in the UAE. Therefore, transfer of shares in companies established in the UAE should adhere to this restriction on foreign ownership.

    Transaction structures for private companies

    As mentioned earlier, investors have the option of either acquiring the shares of the company (a share acquisition) or the assets of that company (an asset acquisition). The investors should conduct due diligence and agree on one of the two (2) structures depending on the factors discussed below:

    Share Sale

    In the case of a share sale, once an investor has purchased all the shares of a particular company, all the assets and liabilities of that company (known or otherwise) will be transferred to the acquirer. Therefore, the status of the target company is not affected by a share sale; however, with a new owner and the seller of the shares will lose his nexus with the entity. It is pertinent for the buyers to conduct extensive due diligence process by employing a law firm that provides bespoke legal advice before purchasing the shares of a company since the investors will assume all the obligations of the business entity. Therefore, the buyer should also negotiate the indemnity, insurance, and warranty of the exact liabilities to mitigate any issues that may arise. However, these solutions are not comprehensive since they may face problems in enforcement since their value depends on the creditworthiness of the seller. Further, an indemnity clause may also be restricted from full enforcement since it is likely to constitute unjust enrichment - prohibited by Sharia Law. Therefore, the injured party can only enforce indemnity to the extent of loss that they have suffered. Minority shareholders will be left when a buyer cannot acquire hundred percent (100%) shares in a company.

    The buyer and seller have to comply with all the restrictions on pre-emptive rights provisions in the company's constitution or the shareholders' agreement.

    However, share sale also has substantial advantages since the investors do not have to purchase every asset of the company individually. The objective of purchasing the assets is indirectly covered in the transfer of shares. This means that the investor acquires all the contracts and other third-party obligations also. However, the buyers should review change-of-control and termination clauses and may also have to obtain the approval or consent of the third parties before those contracts can be executed. Therefore, the investors should ensure that the seller provides all requisite approvals from all third-parties including regulatory approvals before the completion of the transaction. Specifically, the investors should make sure that the DED (Department of Economic Development) of the respective Emirate approves the transfer of shares and issues an amended license with the new ownership status. The target company may not be permitted to conduct its activities in the UAE without a valid license.

    Asset sale

    On the other hand, the investor will only acquire the specific assets and liabilities that are identified. This provides investors with a higher degree of certainty since the investors and handpicks the exact assets and liabilities that they want to acquire. However, buying some assets may also mean acquiring certain liabilities. For example, the investor may be liable for any environmental problem in the real estate property. When the property purchased by the investors are a part of another contract, then the buyer will also be liable for the provisions under those contracts from the date of transfer. However, unidentified assets and liabilities are not transferred to the investors.

    This method is considerably more ambiguous and complicated than share sale since every asset has to be transferred individually by delivery (for a moveable property) or by transfer of title (for real estate). Therefore, the investor should acquire every property and machinery owned by the target company. The ownership of the seller (i.e. the shares in the company) does not change at the completion of an asset sale. These shareholders will continue to be the legal owners of the company since they hold the shares. Further, if an investor who wishes to obtain the benefit of a license or contract; they will need that particular right to be transferred separately. It is pertinent for investors to note that commercial contracts generally contain a clause that restricts the right of the parties to assign the contract to any third-party. Therefore, the investor should explicitly make sure that the seller obtains all approvals required when there is a provision that restricts the novation or assignment of a particular document without the approval of the other party. Federal Law Number 18 of 1993 issuing the Commercial Transactions Law has mentioned the procedures and conditions that the parties should adhere to while transferring a company's property. Article 42 of this law has stated that any action that may deal with the transfer of ownership of a company's property should be attested and authenticated by the Notary Public and should also be registered in the Commercial Registry. Further, Article 45 (1) has also stated that the investor must publish a summary of the contract of sale in two (2) daily Arabic newspapers (between an interval of one week) with the view of providing creditors of the target company to put forward any objections or claims against such sale.

    Miscellaneous

    Transfer tax is not applicable on transfer of the share of companies in the UAE. However, a transfer fee of four percent (4%) shall apply to the transfer of shares of a company established in the UAE. Further, a transfer tax ranging from 1% to 4% is charged on the assignment of real estate right by the Policy Sale Services at the Dubai Land Department. The rate may vary with the nature of the property interest and the particular Emirate.

    On the other hand, in share sales, the employees of the target company will continue to work under the business, and the change in ownership will not change the employment relationship between the employees and the company itself. Although, this general rule does not apply to foreign employees. Federal Law Number 8 of 1980, as amended and Ministerial Order Number 13 of 1991 (collectively, the Labour Law), a foreign employee's sponsorship cannot be transferred to a new employer. However, the buyer may draft new employment contracts for foreign employees of the target company, in the prescribed forms of the Ministry of Immigration and Labor. In an asset sale, the employees of a company cannot be transferred automatically. Although, the investors have the option of revoking the present employment contracts and registering new employment contracts under the new entity. Ergo, companies have to make sure that their transactional structures are most suitable after considering all the factors to safeguard the rights of the parties.


    [i] http://www.investopedia.com/terms/e/economic_efficiency.asp

     

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    Thu, 29 Jun 2017 14:00:00 GMT
    <![CDATA[ Киберпреступления и Суды]]> Киберпреступления и Суды

    Юрисдикция (по умолчанию) - это практический и абсолютный авторитет юридического органа по управлению и исполнению уставов и положений на определенной территории и с определенными  обязанностями. Следовательно, когда преступление имело место на определенной территории, суды этой территории имеют юрисдикцию для рассмотрения этого вопроса. Однако, какой суд будет обладать юрисдикцией для рассмотрения преступления, которое произошло в интернете? Вопрос, который мы поднимаем в данной статье, как определить место рассмотрения и суд, который будет обладать авторитетом для вынесения решений по интернет преступлениям? Давайте сделаем шаг вперед. Что произойдет, если преступление совершено со стороны корпорации, которая не имеет физического присутствия нигде на планете? Будет ли глобально принятый закон об ИТ практически возможным?

    Множество конфиденциальных данных хранятся в флуоресцентной темной комнате в каждом офисе. Эта конфиденциальная информация может быть обычными лог файлами, которые ничего не стоят, а могут быть важными коммерческими секретами, стоящими миллионы долларов. Поэтому для корпораций и многонациональных компаний крайне важно выявить киберпреступления и определить суды, которым будет предоставлена юрисдикция для рассмотрения связанных с этим дел. Виртуальный мир интернета связывает стороны, расположенные в разных частях света. Кто-то, находящийся в отдаленной части Северной Азии, вполне может взломать и получить информацию из компьютерной сети мультинациональной компании в Соединенных Штатах.

    В общих случаях, юрисдикция суда зависит от: i) места, в котором находится ответчик, или ii) места, где возникает причина иска. Однако, говоря о киберпреступности, подобные преступления происходят в виртуальной среде электронным способом. Любая компания, маленькая или огромная, сегодня пользуется технологиями и применяет инфрастуктуру, от самой простой до самой современной, включая сервера, служащие растущим требованиям стабильной, быстрорегулируемой и повышенной нагрузки путем универсальности, модульности и простоты операций. Таким образом, расположение компании и ее сервера не обязательно должны находиться на одной территории, или даже в одной стране. Компания, находящаяся в Сингапуре, может использовать сервера, находящиеся в Румынии, например. Также пользователи интернета не носят невидимый плащ, чтобы вести свою деятельность в киберпространстве. Пользователи интернета подчиняются внутренним законам данной конкретной страны. Однако, в случае кибер преступления, они могут подвергнуться преследованию в любой другой стране, если их обвинят в преступлении, связанном со всемирной сетью. Поэтому юрисдикционные вопросы имеют колоссальную ценность в интернет-преступлениях. Важная проблема в отношении интернет-юрисдикции заключается в том, следует ли рассматривать киберпространство как физическое местоположение или рассматривать сеть как собственный уникальный мир! До настоящего момента нет единого законодательства касательно интернета, принятого всеми странами. Условия и положения веб-сайта в одной стране будут отличаться от другого.

    Американский Взгляд

    Оговорка о надлежащей правовой процедуре в Четырнадцатой (14) поправке к Конституции США предписала обоснованность личной юрисдикции. Суды США относятся к личной юрисдикции как к существенному инструменту для определения места для слушания вопроса. Соотвественно, дело не может быть возбуждено в иностранной юрисдикции, если не существует основополагающих отношений, которые позволяли бы ответчику предвидеть, что дело, поданное против него в данном конкретном суде, существует. Например, нижестоящие суды США полагают, что просто создание и размещение веб-сайта, доступного всем в сети, не дает пользователю интернета общей юрисдикции по всей стране. Тем не менее, Верховный суд США предположил, что суд может наделять личную юрисдикцию в отношении нерезидента, в случае, если его единственным источником контакта со страной, является интернет. Верховный суд, однако, не оценил влияние технологии на личную юрисдикцию.

    Упомянутые выше положения Верховного Суда нашли отражение в печально известном случае Zippo Manufacturing против Zippo Dot Com, Inc. В этом случае истец выдвинул обвинение в  нарушении товарного знака, поскольку ответчик предоставил онлайн-услуги от имени Zippo. Ответчик в данном случае не находился в США. Суд, рассматривая дело, принял во внимание, что ответчик сознательно вел бизнес с жителями Калифорнии, где располагалась штаб-квартира истца. Суд вынес решение в пользу истца. Кроме того, аналогичное решение было принято Окружным Судом Калифорнии в случае Panavision International, L.P. против Toeppen [i]. В этом случае подсудимый создал свой вебсайт с единственной целью - заставить истца приобрести тот же самый домен у него. Подсудимый данного дела находился в штате Иллинойс и не имел прямых или известных контактов с штатом Калифорнии. Это означало бы, что суд не имел никакой явной юрисдикции над ним. Тем не менее, суд постановил, что он имеет конкретную юрисдикцию в этом вопросе, поскольку действия подсудимого повлияли на действия истца, независимо от его физического присутствия в юрисдикции суда.

    Окружной Суд Калифорнии (Окружной Суд) имел иное мнение по делу Макдонау против Фаллона МакЭллиготта, Inc.[ii] В данном деле истец выдвинул иск против ответчика из-за нарушения своих авторских прав и нарушения закона о недобросовестной конкуренции. Ответчик опубликовал фотографии истца в интернете без его согласия. Суд отказал истцу и постановил, что, жители Штата использовали вебсайт ответчика, и что интернет предоставляет неограниченный доступ к информации и публикуемым материалам.

    Взгляд на Юридическое Положение в Европе

    В Постановлении Европейского Союза № 1215 от 2012 года (Правила) подробно описывается юрисдикция европейских судов в гражданских и коммерческих вопросах. В правилах четко изложено золотое правило, что европейский суд может принимать юрисдикцию на основании местожительство обвиняемого. Тем не менее, это вызывает осложнения в тех случаях, когда настоящее местожительство трудно определить, даже если жертва может определить свое местоположение. Кроме того, важно отметить, что местонахождение обвиняемого не определяется с помощью IP (интернет-протокола). Канал интернет протокола/адрес или «IP-адрес» компьютера предоставляет нам информацию только о местонахождении компьютера и его пользователя, работающего в интернете. Местожительство ответчика, с другой стороны,  определяется его основным местом деятельности. Директива Европейской Комиссии об Электронной Торговле, которая в основном касается интернет-законов, не разъясняет каких-либо положений, касающихся юрисдикции суда, для рассмотрения дела о киберпреступности. Кроме того, Конвенция ООН (Конвенция) об использовании электронных сообщений в Международных Договорах определила местонахождение стороны или сторон (местожительство) как их место ведения бизнеса.

    Однако суд может также взять на себя юрисдикцию, если в договоре между сторонами прямо указано, что конкретный суд будет обладать юрисдикцией в случае спора. Это исключение из общего правила обычно происходит, когда компания-разработчик программного обеспечения является одной из сторон, и она выполнила контракт или соглашение о выполнении службы с другой стороной. Cлучаи, когда корпорации, правительство или индивидуальные предприниматели терпят значительный ущерб по причине хакерской атаки или киберпреступления, злонамеренного воздействия на сеть, ДДОС атаки или сбоев в связи с действиями другой стороны, суд государства, где находится жертва, будет обладать юрисдикцией вынести решение по данному вопросу. Кроме того, потребителю онлайн-продуктов и услуг также предоставляется право предъявлять иск другому лицу. Справедливо отметить, что юрисдикция судов в области киберпреступлений в Европейском союзе была четко определена, чтобы устранить любую двусмысленность. Транзакции, совершаемые через Интернет, могут пересекать многочисленные политические границы. Поэтому правомерность законов, связанных с киберпреступностью, может различаться в разных странах .

    Вывод

    Рост киберпреступлений и онлайн атак, мошенничества с помощью фишинга и другие уголовные преступления продолжают влиять на частных лиц, корпорации, правительства и политиков. Возможен ли глобальный закон об ИТ? Возможно ли установить и внедрить криминальные санкции и четкие процедуры? Можно ли по крайней мере определить более широкие понятия, охватывающие проблему на более глобальном уровне? Если это возможно, как будет Глобальный Закон об ИТ влиять на  другие внутренние законодательства? Если подобный закон будет принят, возможно ли подавать иски в электронном виде и будут ли решения выноситься онлайн? Закон об Авторском Праве в Цифровом Тысячелетии (DMCA), который является законодательством Соединенных Штатов относительно авторских прав, включает в себя два (2) соглашения 1996 года о Всемирной Организации Интеллектуальной Собственности (WIPO) и является попыткой противостоять нарушениям авторских прав, позволяя физическим лицам и корпорациям  вызывать закрытие вебресурса, используя онлайн сервисы. Майкрософт недавно принял меры о получении запросов о нарушении авторских прав. Потребуются значительные усилия, чтобы представить единое законодательство, которое отбросит лишние вопросы.


    [i] 141 F.3d 1316 (1998)

    [ii] 40 U.S.P.Q. (2d) 1826 (S.D. Cal. 1996).

     

    [i] 40 U.S.P.Q. (2d) 1826 (S.D. Cal. 1996).

    A Look at Europe's Legal Position

     

    The European Union Regulation 1215 introduced in 2012 (the Regulations) provides a broad framework for the jurisdiction of EU courts in civil as well as commercial claims. The Regulations spell out the golden rule that EU courts can assume jurisdiction based purely on the premise of the domicile of the defendant. However, this imposes an impediment in several matters as determining the actual domicile of a party gets complicated even in circumstances where the victim is in effect able to identify the location. That said, the domicile of the defendant does not get determined by his/her IP (internet protocol address). The internet protocol link/address or the "IP address" of a machine only points the location of the computer and the user surfing the web on that PC. The Defendant's domicile, on the other hand, is determined by his actual place where he/she conduct business. The European Commission's Directive on Electronic Commerce dealing with internet laws does not set out express provision concerning court's jurisdiction in deciding on matters related to cybercrime. Also, the United Nations Convention(the Convention) on the use of Electronic Communications in International Contracts has clarified by defining the location of party or parties (domicile) as their place of business.

    In cases where parties explicitly agree to submit their disputes to individual court, such court would inevitably assume jurisdiction in the event of any conflict. The only exception to this general rule occurs in cases where a software company is a party to claim and has executed an agreement with other. Cases where corporates, government, and individual undertakings suffer substantial damage on account of hacking or cyber-crime, malicious attack, DDOS attempt or attack due to the acts of the attacker, the state where victim entity or individual is based, the courts within such state could assume jurisdiction and decide on the matter. Likewise, consumers and online buyers also get afforded the right to sue the other in the member state of the domicile. It is fair to mention that the courts within EU have a well-regarded framework to determine the jurisdiction of courts in matters involving cybercrimes. Internet transactions may require and cross many political borders. The legalities involved in cybercrime may differ from one country to other.

    Conclusion

    The rise in cyber crimes and online attacks, phishing frauds and related criminal acts have and continue to affect individuals, corporate entities, governments, and politicians. Is a global IT law truly possible? Would it be possible to ensure enforcement, impose criminal sanctions and set out clear procedures? Would it at least be possible to identify some broad areas that could cover and address on a global scale? If so, how would the Global IT law impact other domestic legislation(s)? If such law were enacted, would it be possible to raise claims electronically and whether decisions will be rendered online? The Digital Millennium Copyright Act (the DMCA) which is a United States copyright legislation implements two (2) 1996 treaties of the World Intellectual Property Organization (the WIPO) and has made concerted efforts on global copyright violations by allowing individuals and entities to enforce website takedown using its online service. Microsoft has recently taken steps towards receiving requests for copyright violations. A concerted effort would be required to introduce a one piece legislation that could put several questions at rest.

    [i] 952 F. Supp. 1119

    [ii] 141 F.3d 1316 (1998)

    [iii] 40 U.S.P.Q. (2d) 1826 (S.D. Cal. 1996)

    Jurisdiction (by default) is the practical and ultimate authority within the legal society to administer, review and to execute laws and regulations within a well-defined area of region and responsibility. Therefore, immediately following the commission of a crime within a particular state, the judicial body in that province would have the jurisdiction to hear the matter. However, which court will have the authority and seat to settle and listen to a crime that occurred on the web? The question we raise here is how does one determine and find the right venue and court that has the authority to adjudicate and decide on internet crimes? Now let's take this a step further. What happens in cases where a crime is committed by a corporate entity that has practically no physical office anywhere on the planet?

    An abundance of confidential data gets stored in a dark fluorescent room of every office. This sensitive data may be simple log files worth nothing or sensitive trade secrets worth millions. It is hence crucial for corporates and multinationals to recognize cyber crimes and identify the courts that would have the jurisdiction to settle and hear their rightful claims. The virtual world of internet seamlessly connects parties from one part of the world to the other. Someone based in remote part of Northern Asia may well be in a position to hack and gather information from a computer system owned by a multi-national in the United States.

    In general matters, court's jurisdiction depends on: i) defendant's place of residence, or ii) the states where the cause of action arose. Now, speaking specifically of cyber crimes, such crimes occur within the virtual network using electronic means. Every corporate, small or big is today prevalent with technology and deploy primary to state of the art infrastructure including servers that serve the evolving requirements for robust, agile and heavy workloads through flexibility, modularity, and ease of operation. That said, the location of the company and its server need not be within the same vicinity or for that matter - even within the same country. A company based in Singapore may deploy its servers in Romania, for instance. Also, web users do not wear an invisible cloak to conduct their activities online. Online users are subject to domestic laws of their own country of residence. However, for matters on cyber crimes, such users may be tried and sued in another country where anyone alleges the individual of having committed an internet related crime. For these reasons, jurisdictional aspect has a large role in internet related crimes. The important question about internet jurisdiction is to determine whether to regard cyberspace as a possible physical location or whether to pretend that the web is a unique world altogether! Till date, there is no unified legislation on internet accorded and accepted by countries globally. The terms and conditions for a website in one country are till date different from that of the other. 

     The American View 

    The due process clause under the Fourteenth (14th) Amendment to the US Constitution has prescribed the validity of personal jurisdiction. The US courts often resort to personal jurisdiction as a tool to determine the seat and power to adjudicate. Accordingly, action cannot be brought against someone overseas unless an underlying relation exists that would allow the defendant to expect that matter is being instituted against him in a particular forum. For instance, the US lower courts have held that an individual act of creating a hosting a domain available on world-wide-web does not by default confer internet users to general jurisdiction all across the country. That said, the US Supreme Court has held that courts can confer personal jurisdiction over non-residents where the only source of contact with the country was the internet. The Supreme Court, however, did not evaluate any technological impacts on personal jurisdictional aspects. 

    The above findings of Supreme Court elucidated in the infamous matter of Zippo Manufacturing vs. Zippo Dot Com, Inc. where the Plaintiff leveled trademark infringement violation against the Defendant on the premise that Defendant provided online services using their distinct name Zippo. The Defendant in the present case was a non-US person. The Courts while deciding on the matter had taken into consideration that Defendant had knowingly dealt with and conducted business with residents of California where Plaintiff's headquarters were based. The Court passed the decision in favor of Plaintiff. The California District Court also adopted a similar resolution in the case of Panavision International, L.P. v. Toeppen where Defendant had designed a website with the sole intention of making Plaintiff purchase the domain from Defendant. The Defendant in the present matter was based in the US state of Illinois and had no direct, or known contact with the State of California. This would mean that the District Court in California did not have a direct jurisdiction over the Defendant. Regardless, the court held that it had particular jurisdiction given the actions of Defendant which had adversely affected the rights and actions of Plaintiff regardless of physical presence within the jurisdiction of the court.

    The California (District Court) in  McDonough vs. Fallon McElligott, Inc.[i]  had a differing view. In this matter, Plaintiff brought an action against the Defendant on the grounds of copyright violation and resorting to unfair competition laws. The Defendant posted Plaintiff's photographs without consent. The Court refused Plaintiff's claim and held that residents of the State were using Defendant's website and the Internet is a gateway to unrestricted access to information and posted material.

     

    [i] 40 U.S.P.Q. (2d) 1826 (S.D. Cal. 1996).

    A Look at Europe's Legal Position

     

    The European Union Regulation 1215 introduced in 2012 (the Regulations) provides a broad framework for the jurisdiction of EU courts in civil as well as commercial claims. The Regulations spell out the golden rule that EU courts can assume jurisdiction based purely on the premise of the domicile of the defendant. However, this imposes an impediment in several matters as determining the actual domicile of a party gets complicated even in circumstances where the victim is in effect able to identify the location. That said, the domicile of the defendant does not get determined by his/her IP (internet protocol address). The internet protocol link/address or the "IP address" of a machine only points the location of the computer and the user surfing the web on that PC. The Defendant's domicile, on the other hand, is determined by his actual place where he/she conduct business. The European Commission's Directive on Electronic Commerce dealing with internet laws does not set out express provision concerning court's jurisdiction in deciding on matters related to cybercrime. Also, the United Nations Convention(the Convention) on the use of Electronic Communications in International Contracts has clarified by defining the location of party or parties (domicile) as their place of business.

    In cases where parties explicitly agree to submit their disputes to individual court, such court would inevitably assume jurisdiction in the event of any conflict. The only exception to this general rule occurs in cases where a software company is a party to claim and has executed an agreement with other. Cases where corporates, government, and individual undertakings suffer substantial damage on account of hacking or cyber-crime, malicious attack, DDOS attempt or attack due to the acts of the attacker, the state where victim entity or individual is based, the courts within such state could assume jurisdiction and decide on the matter. Likewise, consumers and online buyers also get afforded the right to sue the other in the member state of the domicile. It is fair to mention that the courts within EU have a well-regarded framework to determine the jurisdiction of courts in matters involving cybercrimes. Internet transactions may require and cross many political borders. The legalities involved in cybercrime may differ from one country to other.

    Conclusion

    The rise in cyber crimes and online attacks, phishing frauds and related criminal acts have and continue to affect individuals, corporate entities, governments, and politicians. Is a global IT law truly possible? Would it be possible to ensure enforcement, impose criminal sanctions and set out clear procedures? Would it at least be possible to identify some broad areas that could cover and address on a global scale? If so, how would the Global IT law impact other domestic legislation(s)? If such law were enacted, would it be possible to raise claims electronically and whether decisions will be rendered online? The Digital Millennium Copyright Act (the DMCA) which is a United States copyright legislation implements two (2) 1996 treaties of the World Intellectual Property Organization (the WIPO) and has made concerted efforts on global copyright violations by allowing individuals and entities to enforce website takedown using its online service. Microsoft has recently taken steps towards receiving requests for copyright violations. A concerted effort would be required to introduce a one piece legislation that could put several questions at rest.


    [i] 952 F. Supp. 1119

    [ii] 141 F.3d 1316 (1998)

    [iii] 40 U.S.P.Q. (2d) 1826 (S.D. Cal. 1996)

     

    ]]>
    Sat, 24 Jun 2017 04:00:00 GMT
    <![CDATA[Осторожно Умысел – Взгляд на Уголовное Право Бахрейна]]>

    Осторожно Умысел – Взгляд на Уголовное Право Бахрейна

    Это, по сути, способность сознательно использовать наш мозг, который отделяет нас, человеческую расу, от диких животных. Эту способность следует использовать внимательно и с осторожностью. Это также создает почву для закона обеспечить гражданское чувство и эффективное управление.  Для каждого действия существует равная и противоположная реакция. Аналогичным образом, каждое решение, намеренное, или ненамеренное, принятое с безрассудством, злым умыслом или небрежностью приводит к‬ неизбежным последствиям и делает человека ответственным. Именно по этой причине последствие любого решения, которое наносит вред или ущерб другим людям, приводит к наказанию виновных (преступный умысел).

    Кровавое убийство всегда будет кровавым убийством, но убийцу не всегда можно назвать хладнокровным. Для преступлений, таких как убийство, закон измеряет ответственность, распознавая состояние разума человека во время преступления. Когда публично действуют психически нестабильные преступники, их наказание часто ограничивается из-за их отсутствия способности принимать правильные решения. Аналогичным образом, когда преступления совершаются случайно, наказание за них почти всегда связано с намерением обвиняемого. Мы принимаем наши решения с сознанием, однако, в каждой ситуации, степень сознания отличается.

    Для любого лица, которое несет ответственность за совершение преступления, должен соблюдаться психологический и физический компонент. Физический компонент, является актом совершения преступления, в то время как психическая составляющая, представляет собой конкретное состояние ума, которым должен обладать обвиняемый при совершении преступления. Условия, для несения ответственности, различаются для каждого вида преступлений. В случае убийства, в Уголовном кодексе Бахрейна 1976 (Уголовный Кодекс) года говорится, что преступник должен обладать необходимым психическим состоянием или намерением, чтобы нести ответственность за убийство.

    Вы Имели Это в Виду?

    Психический компонент охватывает те преступления, которые совершаются преднамеренно, но также и те, которые происходят из-за безрассудства и небрежности. Согласно закону Бахрейна, преступление, связанное с убийством, является преступлением с далеко идущими последствиями. Следовательно, только убийства, которые соответствуют психическому компоненту уголовной ответственности, могут быть названы убийством; убийство по неосторожности не является достаточным для причастности преступника к убийству.

    Некоторые в Бахрейне утверждали, что акты халатности, приводящие к смерти, должны подпадать под понятие убийства, а не сводиться к нарушениям непредумышленного убийства или менее тяжким преступлениям. Общественные активисты Бахрейна, такие как Салман Насер, начали поддерживать эту позицию после недавней гибели человека во время незаконного инцидента с автогонками в Аль-Арине. Тем не менее, Уголовный кодекс не криминализирует поведение тех, кто вызвал смерть, поскольку не было соответствующего намерения. Статья 31 гласит, что те, кто «бессознательно» совершили преступление, не несут ответственности за свои действия. Это резко контрастирует с Законом в Соединенных Штатах Америки, который ранее в этом году обвинил Альфредо Переса Давила в убийстве в автомобильной аварии, виновником которой он стал, что привело к гибели другого человека.

    Учитывая эти различия между правовыми системами, возникает вопрос, следует ли изменить закон? Утверждается, в любом действии с таким серьезным последствием как смерть, вряд ли должно рассматриваться человеческое намерение преступника, а потеря жизни может быть уравнена только потерей другой жизни (даже если это связано с суровыми тюремными заключениями).

    Важность психического состояния правонарушителя во время преступления освещена в статье 46 Уголовного кодекса, в которой разъясняется наказание соучастников. В нем говорится, что каждая сторона преступления будет наказана в соответствии с их «намерением или степенью осведомленности». Это говорит о том, что если кто-либо не намеревался убивать, а принимал участие в преступлении, его наказание будет варьироваться в зависимости от того, знал ли он  о преступлении заранее и намерении участвовать. Вопрос здесь опять-таки относится к обсуждению выше: является ли моральным смягчить подход закона к тем, кто совершает убийство случайно? Это философская область дебатов, в которой нет правильного ответа. Но пусть будет сказано, что мы способны совершать ошибки в разной степени сознания. Измерить наказание на основании преступного умысла во время преступления является логичным, так как наши мысли и намерения направляют наши действия, а не наоборот. Таким образом, не должно ли быть справедливым ограничить наказание соответствующим образом?

    Другая спорная вариация аргумента психического компонента - убийства, совершенные под влиянием наркотических веществ. Закон Бахрейна не обеспечивает бегство от закона  для тех, кто убивает в измененном сознании ума. В статье 34 Уголовного кодекса четко указывается, что «если преступление совершено со знанием и выбором состояния интоксикации, преступник наказывается, как если бы он совершил деяние, не будучи опьяненным». Недавно житель Бахрейни был задержан и находится под следствием в связи с убийством его девушки во время спора о наркотиках. Поскольку он был в состоянии алкогольного опьянения, мужчина, скорее всего, будет признан виновным в убийстве. В отличие от ранее обсуждавшихся сценариев, намерение совершить убийство остается неизменным, когда нарушитель добровольно находится в этом измененном состоянии сознания.  Важность добровольной природы действий преступника это то, что дает основание закону быть жестким в этом вопросе. За принятием решения об интоксикации следует принятие решений в состоянии интоксикации, даже если они такие жестокие как убийство. 

    Вы Имели Это в Виду

    Психическая составляющая намерения требуется статьей 14 Уголовного кодекса. Предусмотрено, что оно «обязательно должно присутствовать в уголовных преступлениях», таких как убийство. С подтверждением наличия необходимого намерения, преступник будет привлечен к ответственности за свои преступления. Пример можно найти в недавнем случае с убийством. Главный подозреваемый в деле об убийсте Хура признался в выдвинутых против него обвинениях в убийстве с помощью ножа, чтобы избежать долгов. Oн признался, что принял решение убить жертву за день до совершения преступления. Из такого рода событий можно сделать вывод, что намерение убийства существовало до совершения деяния. Таким образом, необходимый преступный умысел найден, чтобы осудить преступника на пожизненное тюремное заключение или смертную казнь в соответствии с Законом Бахрейна.

    Преступление не обязательно должно быть «успешным» для несения полной ответственности за убийство. В деле против Абдулла Мохаммеда Хабиба были выдвинуты обвинения в покушении на убийство. В статье 36 Уголовного кодекса четко указывается, что «попытка совершить преступление является действием преступника с намерением вызвать совершение такого правонарушения, даже если оно не было завершено. Простое намерение совершить преступление или действия в его подготовке или его совершение не будут считаться попыткой». Следовательно, вина Хабиба в попытке умышленного  убийства заставит его взять на себя ответственность. Наличие намерения здесь важно. Хотя преступник не совершает преступление, важность намерения раскрывается, когда его наказание эквивалентно значению совершенного преступления.

    Снова возникает философский вопрос о справедливости. Является ли справедливым наказание преступников за преступление, которое они намеревались совершить, но не доделали это успешно? Фактически закон допускает такие наказания, поскольку он не предусматривает конкретных приговоров для лиц, признанных виновными в покушении на убийство. Он предусматривает минимальный срок в 3 года и предусматривает эскалацию пожизненного тюремного заключения или смертную казнь в индивидуальном порядке. Несмотря на это, Суд всегда действует осторожно при наказании за покушение на убийство.

    Вывод

    Способность принимать осознанные решения - это жизненно важная способность, которая налагает бремя предосторожности на каждого человека. Хотя закон наказывает преступников в зависимости от степени их способности принимать сознательные решения, бывают случаи, когда ответственность не может уменьшаться по причине измененного сознания.В случае случайного убийства, из-за халатности или непреднамеренного соучастия, Закон Бахрейна уменьшает обвинение и наказание правонарушителя. Однако в случае убийства, находящегося под воздействием различных веществ или покушения на убийство, Закон Бахрейна разрешает преследование по делу об убийстве и будет наказывать соответственно. Несмотря на это, обязательное намерение осудить преступника за убийство остается неизменным.

    Эти вопросы являются спорными из-за последствий действий вышеупомянутого преступника. Регулярно обсуждается вопрос о том, следует ли игнорировать степень сознательности и унифицировать наказание за убийство. Однако это предложение не учитывает сложность человеческих действий и важность сознания. Физические действия могут контролироваться только умственными решениями, и каждый вид умственного решения индивидуален. Итак различный уровень преступного умысла чрезвычайно важен для определениия соответствия преступления и наказания. 

    ]]>
    Sat, 24 Jun 2017 02:00:00 GMT
    <![CDATA[Гарантии - Законодательство и Практическое Применение в ОАЭ]]>Гарантии - Законодательство и Практическое Применение в ОАЭ
      «Кредит - это система, при которой лицо, которое не может заплатить, использует другого человека, чтобы гарантировать, что он может заплатить». - Чарльз Диккенс   В современном мире хрупких финансов ирония утверждения Чарльза Диккенса хорошо понятна. На этих нестабильных финансовых рынках должники и заемщики стараются выполнить свои финансовые обязательства. Поэтому банкам-кредиторам и учреждениям необходимо быть осторожными и принимать меры по защите и обеспечению их инвестиций.   Поручительство играет важную роль в сделках с долговым финансированием. В рамках обычной коммерческой практики, гарантии, предоставляемые корпорациями или физическими лицами по долгам третьих сторон, часто используются кредиторами учреждения в качестве одной из форм обеспечения. Хотя гарантии смягчают риск, они не исключают его из сферы финансирования ценных бумаг, даже гарант может не выполнить свои обязательства. Следовательно, кредитор должен убедиться в том, что все вероятности в отношении таких гарантий в ОАЭ предусмотрены.     Независимо от вышесказанного, гарантии обеспечивают дополнительную безопасность для кредитора, поэтому гарантированные ценные бумаги часто являются необходимым условием для предоставления финансирования основному должнику. Настоящая статья направлена на изучение правового ландшафта гарантий и применимости таких гарантий в трансграничных сделках, а также законов, касающихся обеспечения соблюдения этих гарантий в рамках нормативной и оперативной базы ОАЭ.   Правовые основы гарантий в соответствии с Законом ОАЭ Концепция Гарантии основывается на законодательной базе Федерального Закона ОАЭ № 5 от 1985 года с поправками (Гражданский кодекс). В главе V Гражданского кодекса подробно излагается действие гарантии (поручительства) в отношении прав и обязанностей основного должника (должника по обязательству), кредитора (кредитора по обязательству) и гаранта (поручителя). Статья 1056 Гражданского кодекса определяет гарантии как поручительство, состоящее из «присоединения к ответственности лица, называемого поручителем, с ответственностью должника по обязательству при исполнении своих обязательств».   Гражданский кодекс прямо предусматривает условия, которые регулируют выдачу и исполнение гарантий, в том числе:  
  • Для того чтобы гарантия была действительной, основной должник должен быть обязан кредитору в отношении долга или имущества известного лица и должен быть в пределах возможностей гаранта выполнить это обязательство;
  • Если нет требования третьей стороны, основной должник и гарант освобождаются от своих обязательств, если кредитор принимает альтернативный способ погашения задолженности;
  • Обязательство гаранта является вторичным по отношению к обязательству основного должника. Любое погашение обязательств основного должника может погасить обязательства гаранта;
  • Если основной должник становится банкротом, кредитор должен доказать свою задолженность в случае банкротства, в противном случае он утратит свое право требовать или регресса против гаранта в размере понесенного ущерба или любых невыплаченных взносов в связи с тем, что он не доказал свою задолженность в банкротство;
  • При погашении долга кредитор должен предоставить поручителю все необходимые документы, с тем чтобы гарант мог воспользоваться своим правом регресса против основного должника; а также
  • Кредитор имеет право на требование или юридическое обращение в отношении основного должника или гаранта или и того, и другого.
  •   Приоритет Жалобы   Как свидетельствует большинство регулирующих финансовых режимов во всем мире, правовой режим в ОАЭ признает приоритет кредиторов и признает, что простое исполнение гарантии не делает банк или финансовое учреждение обеспеченным кредитором. Для того чтобы зарекомендовать себя в качестве обеспеченного кредитора и иметь паритетный ранг с другими кредиторами на момент исполнения требования, кредитор должен обеспечить гарантию залогом. Такие ценные бумаги могут иметь форму ипотеки или залога в отношении активов гаранта.    Ограничения по времени для обеспечения гарантий   Далее рассматривается вопрос о сроке давности, в течение которого кредитор может действовать против гаранта по уплате им причитающихся ему долгов. Хотя статья 1092 Гражданского кодекса предусматривает, что «кредитор должен требовать долг в течение шести месяцев с даты установленной уплаты, а в противном случае гарант считается уволенным», суды ОАЭ столкнулись с противоречивыми заявлениями.     Хотя Кассационный суд Дубая установил, что гарантия является гражданским обязательством и что требование в отношении гаранта должно быть возбуждено в течение шести месяцев с даты оплаты, Верховный суд в Абу-Даби ограничил свою интерпретацию этой же статьи, чтобы временные ограничения не распространялись на гарантии в коммерческих сделках. Таким образом, общепринятой практикой является мягкое толкование положения о лимитировании сроком на 6 месяцев в соответствующих транзакционных документах, особенно в тех случаях, когда бенефициарами являются банки и финансовые учреждения, которые распространили применимое ограничение срока действия на срок свыше 6 месяцев. Однако эта практика не гарантирует, что положение перестанет иметь силу, вот почему кредиторы должны принимать разумные меры для защиты своих интересов. В свободных зонах или оффшорных юрисдикциях эти законы различаются. Например, законодательство в судах Дубайского международного финансового центра (Суды DIFC) обеспечивает гораздо более широкий интервал времени. Исключая случаи мошенничества, иск не может быть возбужден по прошествии более шести лет с даты возникновения основания для иска. Следует отметить, что в тех случаях, когда законодательство о свободных зонах умалчивает такие ограничения, применяются положения Гражданского кодекса ОАЭ.   Особая гарантия   Чтобы установить, является ли гарантия действительной и имеет юридическую силу, важно установить характер гарантии. В гарантии «всех денег» гарант гарантирует все обязательства основного должника перед кредитором, независимо от того, существуют ли они во время поручительства или появляются в будущем. Тем не менее, такие гарантии могут не поддаваться принудительному исполнению в ОАЭ.   Статья 1061 Гражданского кодекса требует, чтобы гарантии выдавались в отношении определенной задолженности или определенной суммы, и поэтому они должны ссылаться на сумму или объект, гарантированные гарантом. Кроме того, Кассационный суд Дубая постановил, что договор поручительства является недействительным, если он не определяет гарантированную сумму; или включает основание, на которое должна рассчитываться гарантированная сумма; или ссылается на кредитную линию, предоставленную основному должнику.  Хотя были решения, в которых суды ОАЭ признавали и применяли гарантии «всех денег», такие решения не устанавливают приоритет.   Гарантии в отношении дочерних компаний   В большинстве сценариев исходная компания может гарантировать кредит, предоставленный ее дочерней компании (или корпоративной группе компаний в соответствии с уставными документами головной компании) при условии получения необходимых корпоративных одобрений, включая решение совета директоров и акционеров. Аналогичным образом филиал может также предоставить обеспечение в отношении займа своему материнскому предприятию в соответствии с вышеизложенными условиями.   Однако существуют определенные оговорки в отношении гарантирования обязательств компанией. Например, директор оффшорной компании в ОАЭ должен действовать осмотрительно и в интересах компании, как это предусмотрено Федеральным законом № 2 от 2015 года (Закон о компании). Статьи 153 и 154 Закона о компании налагают ограничения на компанию для гарантирования любого кредитного соглашения, заключенного членами совета директоров с третьей стороной, а также ограничивают директора от заключения каких-либо соглашений о займе, которые могут включать гарантии на срок, превышающий три года.   Аналогичным образом, субъекты свободной зоны устанавливают аналогичную ответственность директоров. Статья 53 Закона DIFC № 2 от 2009 года гласит, что «директора должны, в частности, действовать честно, добросовестно и законно с учетом наилучших интересов компании.' В этих обстоятельствах директора как для оффшоров, так и для оншорных компаний должны осторожно приступить к совершению сделки при гарантии финансового риска другой компании.   Гарантия трансграничного финансирования    Правовые рамки ОАЭ не налагают никаких ограничений на гарантии, распространяющиеся от национальных сторон на иностранных кредиторов. До тех пор, пока такие гарантии соответствуют положениям закона ОАЭ или законам оффшорной юрисдикции. Такие гарантии должны быть представлены в письменной форме и указывать сумму, обеспечающую гарантию, как указано ранее.   Однако в случае, если ценная бумага исполняется в отношении недвижимого имущества, такая гарантия не может быть предоставлена иностранным банкам, если у банка нет лицензии на коммерческое банковское обслуживание в конкретном эмирате, где находится недвижимое имущество. Однако на практике иностранные банки, кредитующие заемщиков ОАЭ, как правило, назначают местный банк в качестве агента.    Обеспечение движимого имущества может быть предоставлено иностранным банкам-нерезидентам, за исключением случаев, когда:   i. Если это деловая ипотека в отношении активов в свободной зоне Джебель Али, созданной в соответствии с Законом о коммерческих операциях. В этом случае он может быть распространен только на банки или финансовые учреждения, имеющие лицензию на коммерческое банковское обслуживание. ii. Залог средств на банковском счете. Такие залоги могут быть предоставлены только банку- владельцу счета. Однако на практике иностранные банки-нерезиденты обычно назначают местного агента для обеспечения безопасности.   Кроме того, компания, зарегистрированная в DIFC, может предоставить гарантию по долгу заемщика, кто находится внутри или вне DIFC или ОАЭ, если предоставление гарантии соответствует уставу компании, и после получения необходимых разрешений.   Истечение срока гарантии   Истечение срока действия гарантии перечисляется в Статье 1099 Гражданского кодекса, которая предусматривает прекращение или истечение срока действия гарантии, в частности по следующим вопросам: i. Погашение задолженности; ii. Ухудшение / утрата ценных бумаг в руках основного должника в силу форс-мажорных обстоятельств до подачи требования; iii. Основной договор между кредитором и основным должником, заканчивающийся после того, как кредитор начислил свое право на основного должника; iv. Кредитор, освобождающий гаранта от своей ответственности или должника по долгу; v. Смерть основного должника   Помимо вышеизложенного, как предусмотрено статьей 1101 Гражданского Кодекса ОАЭ, гарантия может быть также расторгнута, если между гарантом, должником и кредитором будет достигнуто соглашение о части задолженности, и если этот долг будет урегулирован, то оставшаяся задолженность будет отменена. В соглашении должны быть четко указаны условия, в которых стороны желают отказаться от ответственности поручителя, и в этом случае гарант не будет нести ответственность и будет инициировано автоматическое прекращение гарантии. На основании указанной статьи кредитор может выбрать требование долга (частично или полностью) в отношении основного должника.   Обеспечение гарантии     Кредитор, уведомив гаранта дефолта основного должника, может приступить к принудительному исполнению гарантии в суде. Правовое обращение кредитора может быть осуществлено в форме либо приложенного заявления в начале, и затем существенного судопроизводства, либо немедленного начала предметного судопроизводства. После получения окончательного решения кредитор может приступить к исполнению такого решения путем ликвидации активов гаранта, а любые средства, реализованные в нем, будут использованы в отношении непогашенных обязательств кредитора, остаток будет переведен гаранту.   Можно заметить, что иск против личного поручителя должен быть предъявлен в отношении имущества личного поручителя в случае его смерти. Применимое правовое положение, касающееся завещания и наследства в соответствии с Федеральным законом ОАЭ № 28 от 2005 года, регулирует распределение имущества резидента или гражданина ОАЭ. Согласно статье 275 вышеупомянутого закона, кредиторы умершего будут иметь преимущество перед любым другим распределением, за исключением любых расходов на захоронение. Порядок создания обеспечительного интереса и его применения подробно рассматривается в нашей предыдущей статье.   Освобождение из-под залога обеспечения   Большинство незарегистрированного обеспечения, в частности движимых активов, освобождается путем передачи владения активом обеспечения обратно гаранту, но также может быть выпущено с письмом об освобождении и отстранении от кредитора. Для зарегистрированного обеспечения, такого как залог, необходимо следовать процедуре соответствующего регулирующего органа, как указано.   Вывод   Правовые рамки ОАЭ, в том числе законы оффшорных юрисдикций, четко определяют способ, которым должна выполняться гарантия. Хотя интерпретация ограничений может быть темной областью, структура и подход, применимые к гарантийным обязательствам, по сути, ясны. Поэтому, в то время, как гарант должен придерживаться и понимать последствия и результат своих действий, кредитор должен обеспечить избежание любой неопределенности для процесса принудительного исполнения без препятствий.   Как благоразумно объяснил Шекспир в "Венецианском купце", если бы Антонио осознал всю серьезность ситуации, согласившись гарантировать долг Бассанио хитрому Шейлоку, он мог бы избежать приближения к тому, чтобы потерять все!   ]]>Sat, 20 May 2017 11:00:00 GMT<![CDATA[Всеохватывающая защита - Новый Закон о Труде в Бахрейне]]> Всеохватывающая защита - Новый Закон о Труде в Бахрейне ' «Реформа придет - не тогда, когда мы меняем наши моральные принципы, но когда мы различаем и принимаем последствия уже принятых принципов». -Мэтью Скалли   Потребуется простое изменение формулировки для создания новых значений или необходимых улучшений. Представьте себе, шок руководства банка HSBC, когда им сообщили о необходимой кампании по ребрендингу стоимостью 10 миллионов долларов, когда их фраза «Ничего не предполагай» была переведена как «Ничего не делай» в нескольких странах, что означало, что HSBC не хватало преданости своему делу. Был выучен четкий урок: в то время как организации и правительства требуют постоянных изменений в лучшую сторону, они должны всегда сохранять осторожность при осуществлении этих изменений. В контексте измнений законодательства правительства вопрос улучшения посредством точной формулировки приводится ниже.   Правительства всегда участвовали в правовой реформе в качестве необходимого метода продвижения. Неотъемлемым вопросом в реформе законодательства, существенным для всех правовых систем, является защита сторон в контракте. Следовательно, структурирование и реструктуризация закона всегда должны быть синонимом улучшения, что можно увидеть в различных правовых системах по целому ряду разнообразных вопросов варьируясь от вопросов, касающихся прав женщин в Суфражистской эпохе, до более мелких изменений в законодательстве, таких как вопрос о минимальной заработной плате. Введение в Бахрейне Закона о труде №36 от 2012 года (Новый Закон о труде) отменило предыдущее трудовое законодательство - классический случай новой формулировки, целиком посвященной реформе. При этом он создал новые надежды на улучшение рабочих стандартов, более широкую защиту и более быстрые процедуры разрешения споров. Этот всеобъемлющий Закон о труде является примером эффективной защиты как работодателей, так и работников. Когда требуется, работодателям предоставляется возможность одностороннего расторжения контракта. С другой стороны, существуют антидискриминационные положения, которые защищают сотрудников от жестокого обращения в силу их личных качеств..   Больше не приветствуется   Если старый закон умaлчивал, то новый закон больше нет. Выступая от имени работодателей, закон о новых трудовых отношениях разрешает расторжение контрактов на конкретных условиях и наиболее насущным является отсутствие у сотрудника адекватной производительности или способности выполнять свои обязательства.    Два метода расторжения делятся на те, которые требуют уведомления, и те, которые не требуют уведомления. Статья 109 допускает расторжение договора, если компетенция работника «ограничена или отсутствует». Тем не менее, при этом работодатель должен сначала предоставить работнику шестидесятидневный срок уведомления, что даст ему возможность повысить эффективность своей работы. Если по истечении шестидесятидневного срока работник по-прежнему воспринимается как некомпетентный, должны соблюдаться положения пункта (а) статьи 99. Таким образом, работодатель не связан контрактом, когда работник не отвечает необходимым ожиданиям занятости. Новый Закон о труде обеспечивает адекватную защиту для работодателя, позволяя ему в одностороннем порядке прекращать действие, если обстоятельства являются соответствующими.   В более жестких условиях работодателю предоставляется защита одностороннего расторжения контракта без каких-либо из вышеуказанных формальностей. Статья 107 устанавливает перечень обстоятельств, при которых результаты работника считаются настолько недостаточными или непригодными, что работодатель  может немедленно отстранить его от работы. Примерами таких обстоятельств являются «если работник не выполняет свои основные обязанности в силу трудового договора» и «если работник раскрывает секреты, связанные с работой, без письменного разрешения работодателя». Разрешая увольнение в этих условиях, Новый Закон о труде доказывает его эффективность в целом ряде ситуаций, которые могут возникнуть между договаривающимися сторонами.    Кроме того, всеобъемлющий характер Закона о Труде предусматривает, что защита от одностороннего расторжения договора распространяется на работника. Статья 105 классифицирует это прекращение как «произвольное увольнение работодателем». Следовательно, работодатель имеет право на компенсацию в случае их произвольного одностороннего расторжения. Это расширение закона представляет собой реформу, которая обеспечивает жесткий баланс правозащиты всем сторонам контракта.   В любой ситуации, когда стороны договора не соблюдают положения, установленные в новом Законе о труде, или когда возникает спор о правильном методе процедуры, дело будет передано по-новому организованному Административному Управлению По Трудовым Делам. Процедура, которой руководствуется Бюро Труда, изложена в Законе о труде. Оно  попытается разрешить спор в дружеских условиях, разрешив расторжение договора, с которым согласятся обе стороны. Это новое регулирование, скорее всего, повысит эффективность трудовых дел и увеличит взаиморасчеты между работниками и работодателями.   Необоснованный отказ в правах   Дискриминация является неоспоримым аспектом человеческой истории, и некоторые утверждают, что это также аспект, присущий человеческой природе. Тем не менее, закон обладает способностью управлять поведением человека и обеспечивать его соответствие определенным границам приемлемого и морального. С такими ограничениями, наложенными на способность к дискриминации, нравственность общества постоянно совершенствуется. Реформа закона, как обсуждалось ранее, является императивным фактором для таких улучшений. Как и следовало ожидать, Новый Закон о Труде Бахрейна обеспечивает на этом фронте улучшение.   Четкое запрещение дискриминационной практики раскрывается в статье 39, в которой указывается, что «дискриминация в заработной плате по признаку пола, происхождения, языка, религии или идеологии запрещается». Эти настроения повторяются в вопросах, касающихся расторжения контракта, а также распространяются на такие вопросы, как цвет работника, семейное положение, беременность и принадлежность к профсоюзам. Реформированный Закон о Труде предоставляет больше защит, чем его предшественник, и его легко рассматривать как улучшение.   Вопрос релевантности - это повседневное право женщины. В последних статьях и публикациях говорится о дискриминационном характере непрекращающегося разрыва в оплате труда в странах, которые, как считается, «развиты». Возможность дискриминации в этом отношении значительно сведена к минимуму в соответствии с Законом о Труде. Новый закон не ограничивается только защитой уже существующих прав, но и расширяет права женщин в Бахрейне; ограничения на часы, в которые женщины могут работать, и их способность работать в определенных профессиях были отменены. При трудоустройстве женщин «распространяются все положения, регулирующие занятость мужчин-работников без дискриминации в подобных ситуациях», как это предусмотрено статьей 29. Эти заявления являются отличным свидетельством улучшения, внесенного в результате реформы Закона о труде.   Вывод   Реформа - необходимая мера в любом обществе, мотивированном к успеху. В упрощенном виде необходимыми мерами, нужными для осуществления реформы, являются введение новых идей в законодательство. Рассмотренная выше концепция рассматривается деликатной, но жизненно важной. Бахрейн не является исключением. Было доказано, что после введения нового Закона о труде были усилены законы, регулирующие защиту работников и работодателей. Правомерное одностороннее прекращение предоставляется обеим сторонам контракта, если это применимо. Кроме того, были приняты антидискриминационные меры, обеспечивающие недопущение необоснованных решений. Это была дополнительная защита прав женщин и защита тех, кто может столкнуться с несправедливостью на рабочем месте. ]]>Fri, 19 May 2017 12:00:00 GMT<![CDATA[Строительное Право и Использование Времени]]>Строительное Право и Использование Времени   Человечество создало время, чтобы держать организовать и структурировать свою жизнь. Это, по сути, социальная конструкция, в которой мы живем всю свою жизнь. Это не просто фундаментально, но необходимо для нашего выживания. Закон подобным же образом был создан нами, чтобы диктовать то, как мы должны жить. С порядочностью, честью и с уважением. Понятие времени проникает в каждый аспект нашей жизни,в том числе и в закон.   В этой статье мы используем концепцию Времени, применяя ее к закону в конкретной отрасли строительства и сооружений.    В то время как стороны,участвующие в строительстве или конструкциях, заинтересованы в том, чтобы заработать или инвестировать деньги, а также в качестве работы по проекту, еще одним важным аспектом строительства является время. Бесспорно, время является существенным в рамках строительного контракта. Почему? Цель данной статьи сосредоточить внимание на том факте, что возможные задержки в завершении проекта могут дать право заказчику требовать от подрядчика возмещения убытков. Как правило, эти требования огромные, сложные и запутанные в контрактах для менеджеров,юристов, консультантов по заявкам, экспертов занимающихся пересмотром оценок исков и судей.     Несколько вещей неразрывно связаны с концепцией времени в сочетании со строительством  в ОАЭ, а именно принцип предотвращения, время в целом и его последствия для Отсрочки по Времени (EOT) или Штрафные Неустойки. Имея в  виду что эти выплаты по договорам на строительство всегда подчиняются условиям контракта и текущим обстоятельствам, подкрепленным фактическими данными, в этой статье акцент делается на вышеупомянутых проблемах, особенно в ОАЭ.   Принцип профилактики   В деле Trollope & Colls Ltd против North West Metropolitan Hospital Board лорд Деннинг утверждал: «Хорошо известно, что в  строительных контрактах - а также в других контрактах  -при соглашении о выполнении работы в течение ограниченного времени, если одна сторона по его ведению - это может быть вполне законное ведение, например, заказ дополнительной работы, - делает невозможным или неосуществимым для другой стороны выполнение своей работы в течение оговоренного времени, то тот, чье ведение вызвало эту проблему, больше не может настаивать на строгом соблюдении установленного времени.Он не может требовать каких-либо штрафов или возмещения ущерба за невыполнение контракта». Это понятие приняло форму известный как Принцип Предотвращения. В непрофессионалых терминах это означает, что если работодатель намеренно или непреднамеренно препятствует своевременному завершению проекта, как это было согласовано в строительном контракте, то контракт будет действовать так, как если бы время завершения не было бы предусмотрено сторонами. Таким образом, время завершения контракта становится «Временем в целом», что лишает работодателя возможности искать возмещения убытка в случае задержки. Обоснование, лежащее в основе принципа предотвращения, заключается в том, что сторона, будь то подрядчик или субподрядчик, не несет ответственности, если одна сторона помешала  другой стороне в выполнении ее контрактных обязательств своевременно.  Сторона не может извлекать пользу из собственных несправедливых действий.  Значение Принципа Предотвращения было кратко сформулировано Джексоном J в Multiplex v Honeywell: «Суть принципа предотвращения заключается в том, что лицо, которому дано обязательство, не может настаивать на исполнении обязательства, если оно помешало его исполнению.»   Хотя принцип предотвращения уже давно установлен в доктрине английского общего права, он конкретно не упоминается в законе о гражданских операциях ОАЭ (он же Гражданский кодекс ОАЭ). Тем не менее, Гражданский кодекс ОАЭ содержит положения, которые предполагают применение принципов предотвращения для работодателей. Обычными причинами, которые могут вызвать задержку, являются, например:  - задержка доступа к строительной площадке; или - отклонения или изменения в согласованном объеме работ,  - запоздалые инструкции,  - задержки в утверждении чертежей,  - вовлечение других сторон (таких как другие подрядчики и субподрядчики, нанятые заказчиком), отставание от графика, - задержки с предоставлением сырья (если это было обязательством заказчика) итд.    Этот принцип закреплен в статье 246 Закона о Гражданских Операциях ОАЭ в связи с тем, что принцип лояльности хорошо вписывается в эту статью. В ней говорится: (1) «Договор должен быть выполнен в соответствии с его содержанием и в соответствии с требованиями лояльности. (2) Контракт не ограничивается обязательством договаривающейся стороны сделать то, что (прямо) содержится в нем, но также включает в себя то, что относится к силе закона, заказа и характера сделки». Это условие часто упоминается подрядчиками по нескольким причинам,например как добросовестное выполнение или заявления о незаконных действиях со стороны заказчика или инженера от имени заказчика.    Кроме того, статья 106 Гражданского кодекса ОАЭ также гласит, что ни одна из сторон не может осуществлять свои права по контракту способом, который угнетает или оскорбляет другого. Статья 106 Гражданского кодекса устанавливает, что осуществление права является незаконным, если среди прочего желаемые интересы несоразмерны ущербу, который понесет другая сторона. Соответственно, отказ инженера предоставить продление времени и последующая попытка заказчика взыскать за ликвидацию убытков, возможно, стала бы нарушением положений статей 106 и 246 Гражданского кодекса ОАЭ. Статьи 318 и 319 Гражданского кодекса ОАЭ далее предусматривают, что несправедливое обогащение является незаконным, и, следовательно, в вопросах строительства, может быть возбуждено разбирательство против неосновательного обогащения заказчика, когда он вызвал задержку. Тем не менее, на то же положение может полагаться и заказчик в случае одновременных задержек, если может быть доказано, что подрядчик несет равную ответственность за задержку. Кроме того, местное законодательство ОАЭ также считает «исключение пункта об ответственности» неправомерным в соответствии со статьей 296 Гражданского кодекса ОАЭ. В этой статье говорится, что любые условия, предусматривающие освобождение от ответственности за вредное действие, должны быть аннулированны, что может быть истолковано как означающее, что любое положение, которое полностью освобождает виновную сторону от ответственности, может считаться недействительным.    Время в целом   Отказ от пункта о штрафных неустойках может свидетельствовать о поворотном пункте в строительной отрасли, в Peak Construction (Liverpool) Ltd v McKinney Foundations Ltd  Салман Ли утверждал, что «Eсли заказчик желает возместить штрафные неустойки за неисполнение подрядчиком своих обязательств вовремя, несмотря на то, что некоторые задержки происходит из-за собственного нарушения, то продление сроков должно предусматривать как продление срока в связи с виной или нарушением со стороны заказчика." Когда наступает время в целом, подрядчик освобождается от какой-либо ответственности за ликвидацию убытков. Это связано с тем, что время, установленное для завершения, само по себе перестало учитываться, и подрядчику было бы только поручено завершить проектные работы в разумные сроки. Время может стать неконкретным не только в результате применения принципа предотвращения, но и в следующих обстоятельствах: i.    Неспособность сторон указать дату завершения работ в контракте или; ii.   Из-за неспособности продления времени.  iii.  Вмешательство работодателя в процесс сертификации или когда инженеру / архитектору или инспектору не предоставлены полномочия на предоставление продления времени при возникновении соответствующих событий, способствующих задержке, не относящейся к подрядчику.    В этом случае на заказчике лежит ответственность по установлению разумного времени для завершения проекта и по установлению понесенных потерь  в связи с задержкой со стороны подрядчика.    Разумный срок   На первый взгляд применение принципа Время в целом кажется справедливым и достаточно легким для понимания. Однако, это чревато практической запутанностью. Кит Пикаванс в своей похвальной статье под названием «Расчет разумного времени для завершения работ» определяет следующие факторы, которые потенциально важны для расчета разумного времени для завершения в любых конкретных обстоятельствах:    i.   Оценка вероятной продолжительности строительства, указанной в ходе переговоров; ii.  Распределение рисков в период строительства в соответствии с контрактом;  iii. Степень, в которой иногда риски находятся или могут находиться под контролем той или иной стороны; Если исковое заявление о возмещении ущерба сделано владельцем, бремя доказательства лежит на заказчике, чтобы доказать, что: i.   Подрядчик превысил «разумное время» и  ii.  Владелец понес убытки в результате таких задержек.   Продолжительность, которое представляет собой разумное время, является вопросом факта, а не права, при котором объективно  оцениваются различные факторы и обстоятельства. Обстоятельства, существующие на момент заключения контракта на месте работы, объем работы каждой из участвующих сторон, существенные отклонения, исключая положения и ситуации ответственности, факторы контроля подрядчика во избежание задержек итд, являются факторами, которые приспособляющие и зависят от конкретного случая.    Временная шкала   Однако условие о штрафных неустойках может быть сохранено в связи с положениями временной шкалы. Они указывают дату завершения или условия продления времени, но только для критических задержек, связанных с заказчиком, или других задержек, при которых EOT может быть предоставлено инженером, инспектором или архитектором. Положения временной шкалы убеждают подрядчика уведомить о задержках или запросе дополнительных платежей. Таким образом, положение временной шкалы поощряет стороны к тому, чтобы они включили пункт EOT, представляющий взаимный интерес.   Продление времени   Ввиду вышесказанного, важно сохранить пункт о продлении срока действия (EOT) в контракте для добросовестного осуществления прав и возможностей со стороны строительных сторон. Красная книга FIDIC, в которой изложены положения, на основании которых может быть предоставлено EOT, является одной из самых узнаваемых форм FIDIC в ОАЭ. Учитывая тот факт, что контракт на строительство регулирует распределение рисков между сторонами, контракт должен четко указывать список событий, которые должны рассматриваться как «релевантные события», чтобы предоставить подрядчику EOT, в том числе, какие события находятся на риск заказчика. Если задержки произошли по любой причине, которая не относится к подрядчику и влияет на критический путь проекта, независимо от того, идентифицирован ли он как критический путь или нет, это даст подрядчику право искать EOT. Заказчик должен предоставить EOT для таких критических задержек. Инженеры, отвечающие за строительство, консультанты по контрактам или администраторы, назначенные работодателем для оценки проектных работ, также могут предоставить EOT. Тем не менее, предоставление EOT всегда подлежит уведомлению подрядчиком. Подпункт 20.1 FIDIC 1999Требования подрядчика») установил новую практику, запрещающую право подрядчика на EOT за несоблюдение требования уведомления по контракту. Таким образом, подрядчики рискуют своим правом на EOT, если они не уведомлят о задержке и не укажут причины для этого, тем самым не выполнив условия соглашения, предшествующего уведомлению. Уведомление должно быть снабжено подробной претензией вместе с подтверждающей документацией. Это помогает сторонам выдвигать претензию в ходе выполнения контракта, а также оценивать претензии для последующей сертификации (или отклонения).     Вывод   Риски, применимость принципа предотвращения, время, право на EOT и штрафные неустойки часто рассматриваются на основе отношений между сторонами, как это предусмотрено в контракте. Установление обязательств и прав сторон является функцией тонкой формулировки договора, а также точного понимания фактов дела. В свете вышесказанного рекомендуется тщательно дорабатывать, а также точно понимать положения контрактов между сторонами. Таким образом, проявление старания в выполнении предварительных условий, необходимых для установления каких-либо претензий, является непременным условием для любой стороны строительного контракта с целью установления своего требования.    ]]>Fri, 19 May 2017 12:00:00 GMT<![CDATA[TRADEMARK REGISTRATION - MIDDLE EAST]]> Iraq

    Law Number 21 of 1957 being the Iraq Trademark and Geographical Indications Law . Iraq has sought permanent membership in the world trade organisation (the WTO ) and is currently holding observer status

    10 The Iraq Trademark Law defines trademarks to include any sign, or any combination of signs, capable of distinguishing the goods of one undertaking from those of other undertakings, shall be capable of constituting a trademark. Such signs, in particular words including personal names, letters, numerals, figurative elements and colours as well as any combination of such signs, shall be eligible for registration as trademarks. Where signs are not inherently capable of distinguishing the relevant goods or services, registrability will depend on distinctiveness acquired through use. Signs need not be visually perceptible in order to be eligible for protection as trademarks. Any person desirous of using a mark for distinguishing goods of his own production, manufacture, trade (including intention to trade) or making an offer to sell. Note: Trademark applications filed in Iraq (Baghdad) extend to whole region including Erbil. Erbil however maintains a separate trademark office. Trademark owners cannot validate trademarks that were registered in Baghdad with the trademark office in Erbil. Applicants desirous of additional protection locally within Erbil must make a separate/new application in Erbil before Ministry of Industry and Trade (Trademark Division), Erbil, the capital of Kurdistan, Iraq. The term or duration of registration is 10 years. Iraq protect swell-known trademarks irrespective of whether such marks are registered domestically within Iraq. 1. Priority Document; 2. Trademark Logo or specimen documents (5 x 6 cm or 6 x 7 cm in print form) and (4 x 4 cm or 315 px by 315 px); 3. Trade license Copy for national companies only with a signature delegation from applicant if the application is filed through third party ; 4. Power of Attorney maybe given to lawyers, or IP Agents ; 5. Passport Copy and personal details of applicant; and 6. Additional Attachments, if any. Note: International applicants who doe not have Iraq consulate in their home country can legalise the power of attorney before any other GCC (or; Arab) country. Accordingly, the legalisation of power of attorney should first happen before the Ministry of Foreign Affairs (or; related Ministry) in the GCC or Arab country followed by legalisation before the consulate of GCC/Arab country in Iraq followed by Ministry of Foreign Affairs in Iraq. 1. Trademark application , power of attorney, and supporting documents including trademark specimen must be submitted in Arabic language. 2. The Registrar of trademarks accepts applications that are in compliance with law and procedures. Once accepted, the grant of marks is printed and published in the official gazette of Iraq thrice. Opposition claims are open for a term of three (3) months. If the Registrar does not receive any claim as to opposition of trademarks, the trademark is deemed as final and trademark certificate is issued to the applicant . 1. Singapore Treaty on Law of Trademarks; 2. Paris Convention for the Protection of Industrial Property; 3. Convention establishing the WIPO; 4. World Trade Organisation - Observer Status ( refer , column one on left) The Singapore Treaty on Law of Trademarks dated 16 March 2009 is primarily aimed at harmonising procedures of contracting parties intending to file national or regional trademark or service mark applications. The treaty comprises of 32 articles and contracting parties have the discretion to receive applications (whether in hard copy formation, electronic copies or otherwise) as per their choice. The treaty currently (as of February 2015 - source: wipo.int) comprises of 42 contracting parties

    Yemen

    Law Number 23 of 2010 being Yemen Trademarks and geographical Indications Law

    10 Article 3 of the Yemen Trademark Law defines Trademark as 'a trademark is anything of distinctive form which is visible to the eye, including names, words, letters, numbers, signatures, drawings, symbols, seals, pictures or embossment , or a particular arrangement of colour or set of colours, or any group of these features, if used or intended to be used to distinguish the products or services of a commercial, industrial, agricultural , professional or service enterprise. There is a six month term commencing from the date of publication date up to the date of registration of a trademark Article 53 of Yemen Trademark Law sets out that following persons may apply for trademark(s):- 1. Every (natural or juridicial person who is) a Yemeni who chooses to base their effective activities in Yemen; 2. every (natural or juridicial person who is) a foreigner who chooses to base his effective activities in Yemen; 3. public sector bodies and institutions; and 4. States or entities that are linked to Yemen or where Yemen has relations of reciprocity and/or has the right to request for registration of trademark in accordance with the Trademark Law of Yemen. 1. Power of Attorney certified by a competent authority if the application is made through an agent or representative of applicant;. 2. A copy of a valid certificate of incorporation or commercial register (duly legalized), providing clearly - name of entity, name of managing director, registered place of business, and related; 3. Image matching the mark to be registered so that they are clear and free from any promotional or descriptive phrases (14 copies); 4. Passport copy and personal details of applicant; 5. copy of priority document if priority is being claimed; and 6. additional attachments, if an 1. Translation in Arabic issued by the Office of certified documents and data written in a foreign language. 2. In the event applicant is claiming priority, the applicant should attach the date and number of prior application along with the name of country and authority where such prior application was made. The Law also requires applicants to submit certified photo copy of prior application within three (3) months the date priority application has been filed. 1. Paris Convention for the Protection of Industrial Property ; 2. Convention Establishing the World Intellectual Property Organization ; 3. Paris Convention for the Protection of Industrial Property ; 4. World Trade Organization (WTO) - Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement)  

    Jordan

    Law Number 34 of 1999 Issued Pursuant to official gazette number 4389 of 1999 dated 1 November 1999

    10 Article 2 of Jordanian Trademark Law defines Trademark as "any visually perceptible sign used or to be used by any person for distinguishing his goods or services from those of others." Opposition claims can be filed within a three month term from date of publication as per Article 14 of the Law. A notice of opposition must be given in writing in the prescribed manner and should inculde a statement of the grounds for the opposition. Article 11 of Jordan's Trademark Law sets out that "any person claiming to be the proprietor of a used or proposed to be used trademark who is desirous of registering such trademark shall apply in writing to the registrar in the prescribed manner." 1. power of attorney duly signed, notarised, and legalised before Consular of Jordan; 2. applicant's personal details including name, nationality, address, and occupation where applicant is an individual; 3. applicant's company details including trade name, nationality, address, business activity, name of managing director where applicant is a corporate entity; 4. itemised list of products forming part of trademark application; 5. meaning and/or origin of the mark being registered; and 6. priority documents in the event priority is being claimed and has been certified before the competent authority 1. The forms and other supporting documents to be submitted (including power of attorney) must be in Arabic . . 1. Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks ; 2. Vienna Agreement Establishing an International Classification of the Figurative Elements of Marks ; 3. Paris Convention for the Protection of Industrial Property ; 4. Convention Establishing the World Intellectual Property Organization ;and 5. World Trade Organization (WTO) - Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement ordan has been considering accession to Madrid Protocol for over an decade which (if acceded) would make Jordan compliant in trading with United States and European Union. In this regard, Jordan passed an amendments to its trademark law in the year 2007 (through Law number 29 of 2007) to access the Protocol. The Protocol has however not been implemented till date

    Algeria

    Order Number 3-6 dated 19 July 2003 dealing with Trademarks. Executive Decree Number 5 - 277 of 2005 laying down the Procedures for Filing and Issuance of Trademarks. Executive Decree Number 8-346 o f 2008 supplementing Decree 5-277 of 2005

    10 Article 2 of Algerian Trademark Law defines Trademark as "all symbols representable in writing, especially words including persons' names, letters and numbers , drawings , pictures, forms distinguishing goods or packages thereof, and colours or combination there of used to distinguish goods or services of a natural or nominal person from the goods and services of someone else." 1. Natives of natural or legal entity, practicing any of the commercial , industrial, professional, or service business ; 2. foreigners of natural or legal entity, practicing any of the commercial, industrial, professional, or service business in the State. 3. foreigners of natural or legal entity practicing any of the commercial, industrial, vocational or service business in any state having reciprocity of treatment with the State; 4. public legal persons ; and 5. owners of well-known marks. 1. power of attorney duly signed (in French language); 2. applicant's personal details including name, nationality, address, and occupation where applicant is an individual; 3. applicant's company details including trade name, nationality, address, business activity, name of managing director where applicant is a corporate entity; 4. itemised list of products forming part of trademark application (2 prints of trademark to be included); 5. meaning and/or origin of the mark being registered; and 6. priority documents (with verified French translation) in the event priority is being claimed and has been certified before the competent authority 1. The power of attorney, application form (3 print sets) and priority documents (if applicable) must be submitted in French language 1. Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks ; 2. Madrid Agreement Concerning the International Registration of Marks ; 3. Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks; and 4. Paris Convention for the Protection of Industrial Property The Madrid System makes it possible for an applicant to apply for a trademark in a large number of countries by filing a single international application at a national or regional IP office of a country/region that is party to the system. It simplifies the process of multinational trademark registration by reducing the requirement to file an application at the intellectual property office in each country in which protection is sought. The system also simplifies the subsequent management of the mark, since it is possible to record further changes or to renew the registration through a single procedural step.

    Egypt

    Law Number 82 of 2002 on the protection of Intellectual property Rights 10 Article 63 of the Egyptian Trademark Law defines trademark as "A trademark is any sign distinguishing goods, whether products or services, and include in particular names represented in a distinctive manner, signatures, words, letters, numerals, designs, symbols, signposts, stamps, seals , drawings , engravings , a combination of distinctly formed colours and any other combination of these elements if used, or meant to be used, to distinguish the products of a particular industry, agricultural, forest or mining venture or any goods, or to indicate the origin of products or goods, or their quality, category, guarantee, preparation process, or to indicate the provision of any service. In all cases, a trademark shall be a sign that is recognizable by sight. " Article 66 of the Law clarifies "Without prejudice to the provisions of international conventions in force in Egypt, any natural person or legal entity, Egyptian or foreign, belonging to or having the center of his or its effective activity in a country or entity member in the World Trade Organization or who applies reciprocity to Egypt, shall have the right to apply for the registration of a trademark with the Department of Trade Registry in Egypt, with all attendant rights in conformity with the provisions of this Law. 1. power of attorney (Arabic) duly signed, notarised, and legalised before Consular of Egypt; 2. twelve (12) prints of trademark; 3. applicant's personal details including name, nationality, address, and occupation where applicant is an individual; 4. applicant's company details including trade name, nationality, copy of the company's article of incorporation or commercial register legalised before the Egyptian Consulate (duly translated into Arabic), address, business activity, name of managing director where applicant is a corporate entity; 5. itemised list of products forming part of trademark application; 6. meaning and/or origin of the mark being registered; and 7. priority documents in the event priority is being claimed and has been certified before the competent authority all documents (including form , incorporation documents, power of attorney and other attachments) must be submitted in Arabic language. 1. Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks ; 2. Madrid Agreement Concerning the International Registration of Marks; 3. Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks; 4. Paris Convention for the Protection of Industrial Property ; 5. Trademark Law Treaty ; 6. Convention Establishing the World Intellectual Property Organization ; 7. Paris Convention for the Protection of Industrial Property ; 8. World Trade Organization (WTO) - Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) International applicants can benefit under the Madrid System by filing a single application and getting protection in multiple countries (covered under Madrid System). Under the Madrid system, a trademark owner may protect a mark in up to 90 countries plus the European Union with its Community Trade Mark (CTM) by filing one application, in one language (English, French or Spanish), with one set of fees, in one currency (Swiss Francs)

    Morocco

    Law number 23-13 amending and supplementing Law No. 17-97 on the Protection of Industrial Property (21 November 2014) 10 Article 133 of Moroccan Trademark Law defines Trademark as "For the purposes of this Law, a trademark or a service mark means a sign capable of graphic representation which serves to distinguish the goods or services of a natural or legal person. The following, in particular, may constitute such a sign: a. Denominations in all forms, such as: words, combinations of words, surnames and geographical names, pseudonyms, letters, numerals, abbreviations; b. figurative signs such as: devices, labels, seals, selvedges, reliefs, holograms, logos, synthesized images; shapes, particularly those of a product or its packaging or those that identify a service; arrangements, combinations or shades of color. c. sound signs such as : sounds, musical pieces; d. olfactory marks. 1. Natives of natural or legal entity, practicing any of the commercial , industrial , professional, or service business ; 2. foreigners of natural or legal entity, practicing any of the commercial, industrial, professional, or service business in the State. 3. foreigners of natural or legal entity practicing any of the commercial, industrial, vocational or service business in any state having reciprocity of treatment with the State; 4. public legal persons ; and 5. owners of well-known marks. 1. power of attorney (Arabic) duly signed, notarised, and legalised before Consular of Morocco to be submitted through local agent; 2. fifteen (15) prints of trademark; 3. applicant's personal details including name, nationality, address, and occupation where applicant is an individual; 4. applicant's company details including trade name, nationality, copy of the company's article of incorporation or commercial register legalised before the Morocco Consulate (duly translated into Arabic), address, business activity, name of managing director where applicant is a corporate entity; 5. itemised list of products forming part of trademark application; 6. meaning and/or origin of the mark being registered; and 7. priority documents in the event priority is being claimed and has been certified before the competent authority Note: a. For sound marks - applicants must submit musical notations (musical notes); and b. For smell marks - applicants must submit explanatory legend as to essence. The application form is submitted in French language. Once the marks have been published in the Official Gazette, there is a set term of sixty (60) post publication date to file for opposition claims relating to domestic registrations. In case of international applications, the term is set for two (2) months from the date mark is published in Gazette. opposition term cannot be extended. 1. Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks ; 2. Madrid Agreement Concerning the International Registration of Marks; 3. Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks; 4. Paris Convention for the Protection of Industrial Property ; 5. Trademark Law Treaty ; 6. Convention Establishing the World Intellectual Property Organization ; 7. Paris Convention for the Protection of Industrial Property ; 8. World Trade Organization (WTO) - Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) Morocco is a member of the Paris Convention. An applicant who has applied for a trade mark in another convention country is entitled to a priority right to be accorded the same date as the first filed application, provided the Moroccan application is filed within six months of such earlier filing date. Morocco is also a member of the Madrid Agreement and Protocol, so that registration of a trade mark may be obtained by way of an international application designating Morocco. Under the WIPO-administered Madrid system, a trademark owner may protect a mark in up to 90 countries plus the European Union with its Community Trade Mark (CTM) by filing one application, in one language (English, French or Spanish), with one set of fees, in one currency (Swiss Francs)

    Tunisia

    Law Number 36 of 2001

    10 A trademark or a service mark is an apparent sign, which makes it possible to distinguish the goods presented or the services provided by a natural or a juridical person. In particular this sign may consists of: a. All forms of designations such as: words , groups of words , surnames, geographical names, pseudonyms, letters, numbers and symbols. b. graphic signs such as: drawings, holograms and shapes in particular those related to the p r o d u c t , its method of presentation, or those which distinguish the services , the arrangements of colors, the mixings of colors or the separation of the grades ofcolors. c. Phonic signs such as musical tunes and sentences. 1. Natives of natural or legal entity, practicing any of the commercial , industrial, professional, or service business ; 2. foreigners of natural or legal entity, practicing any of the commercial, industrial, professional, or service business in the State. 3. foreigners of natural or legal entity practicing any of the commercial, industrial, vocational or service business in any state having reciprocity of treatment with the State; 4. public legal persons ; and 5. owners of well-known marks. 1. power of attorney duly signed; 2. six (6) prints of trademark; 3. applicant's personal details including name, nationality, address, and occupation where applicant is an individual; 4. applicant's company details including trade name, nationality, copy of the company's article of incorporation or commercial register, address, business activity, name of managing director where applicant is a corporate entity; 5. itemised list of products forming part of trademark application; and 6. meaning and/or origin of the mark being registered. The application form can be submitted in English or French. 1. Vienna Agreement Establishing an International Classification of the Figurative Elements of Marks ; 2. Convention Establishing the World Intellectual Property Organization ; 3. Nice Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks ; 4. Hague Agreement Concerning the International Registration of Industrial Design ; 5. Paris Convention for the Protection of Industrial Property ; 6. Agreement establishing the world trade Organization (WTO) ; 7. World Trade Organization (WTO) - Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) ; 8. Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks Under the WIPO-administered Madrid system, a trademark owner may protect a mark in up to 90 countries plus the European Union with its Community Trade Mark (CTM) by filing one application, in one language (English, French or Spanish), with one set of fees, in one currency (Swiss Francs)

     

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    Wed, 02 Mar 2016 11:19:00 GMT
    <![CDATA[TRADEMARK REGISTRATION GCC COUNTRIES]]>
    The UAE Trademark Law Number 37 of 1992 was amended by Law number 19 of 2000 followed by Law Number 8 of 2002 10 An applicant can file or register a trademark under Federal law no. No. 37 of 1992 on Trademarks amended by Law No. 19 of 2000 and Law No. 8 of 2002 which sets out the definition of trademark and covers names, words, signatures, letters, figures, drawings, symbols, titles, tax stamps, seals, pictures, inscriptions, advertisements or packs or any other mark or combination thereof.

    Sound is considered a part of the trademark if it accompanies thereto 1. Natives of natural or legal entity, practicing any of the commercial , industrial , professional, or service business ; 2. foreigners of natural or legal entity, practicing any of the commercial, industrial, professional, or service business in the State. 3. foreigners of natural or legal entity practicing any of the commercial, industrial, vocational or service business in any state having reciprocity of treatment with the State; 4. public legal persons ; and 5. owners of well-known marks. Priority Document; 2. Trademark Logo or specimen documents (5 x 6 cm or 6 x 7 cm in print form) and (4 x 4 cm or 315 px by 315 px); 3. Trade license Copy for national companies only with a signature delegation from applicant if the application is filed through third party ; 4. Power of Attorney maybe given to lawyers, or IP Agents ; 5. Passport Copy with personal details of applicant; and 6. Additional Attachments, if any. Note: International applicants who doe not have UAE consulate in their home country can legalise the power of attorney before any other GCC (or; Arab) country. Accordingly, the legalisation of power of attorney should first happen before the Ministry of Foreign Affairs (or; related Ministry) in the GCC or Arab country followed by legalisation before the consulate of GCC/Arab country in UAE followed by Ministry of Foreign Affairs in UAE Application must be submitted in Arabic. The Ministry of Economy is responsible for registration (including preliminary search) in the UAE . 2. Once the application is filed, it is queued to be examined for review by Registrar. Applications accepted by Registrar are published in the Trademark Journal and two local Arabic Newspapers. There is 30 days period for filling an opposition by any interested party. The decision of the Registrar on claim for opposition of marks may be appealed to the Committee in the Trademark Office, and the Committee's decision may be appealed to the competent court.. Please visit http://bit.ly/uae-ip for more Paris Convention for the Protection of Industrial Property ; 2. Nice Classification; 3. Convention Establishing the World Intellectual Property Organisation (the WIPO ) ; 4. The economic agreement between gulf Cooperation Council States (the GCC ) and the Unified Economic Agreement Between GCC States (Article 20, Chapter VI); and 5. World Trade Organisation (the WTO ) - Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement) (1994) (April 10, 1996) Note: UAE is not a member of the Madrid Convention or the Madrid Protocol. Note: UAE is not a member of the Nice Agreement 1957 but has adopted Nice Classification (10th Edition). The UAE recognises and protects trademarks registered internationally even if such trademarks have not been registered within the UAE. (refer, Article 4 (1) of the UAE Trademark Law) and Article 6 bis of the Paris Convention. Recognition, reputation and popularity of mark shall however be considered by the Registrar in such matters . 2. Whilst GCC Treaty is not a party to any international treaty, it does encourage growth and development of intellectual property across GCC member states.

    kingdom of Saudi Arabia (the KSA ).

    Saudi Arabia's Law of Trademarks (promulgated by Royal Decree No. M/21 of 28 Jumada I 1423 (August 7, 2002)) governs the trademark registration in KSA .

    10 A trademark , according to the provisions of this law includes i) names of distinct shapes, ii) signatures, words, letters, numbers, drawings, symbols, stamps, and prominent inscriptions; or iii) any other sign or combination thereof that are suitable to distinguish industrial, commercial, vocational or agricultural products; or iv) projects aimed at exploitation of forests or natural resources; or vi) to indicate that the product or item on which the mark is applied belongs to the owner of the mark on the grounds o f manufacture, selection and invention thereof or trading therewith or; vii) to indicate the rendering of a certain service

      1. Natural or juristic persons of Saudi nationality ; 2. persons regularly residing in the Kingdom of Saudi Arabia and are permitted to engage in commercial or vocational activities; 3. foreigners who are nationals of countries that extend reciprocal treatment to the Kingdom; 4. nationals of a country which is a member to an international multi-lateral treaty in which the Kingdom is party to or persons who reside in that country; and 5. Public agencies. and owners of well-known marks . Note: The Ministry of Commerce and Industry accepts trademark registration applications online on its website http://mci.gov.sa 1. A photo of the trademark (not exceeding 10 x 10 cm); 2. name of the applicant, his family name, his address, and his commercial name, if any ; 3. legal representative: his name, address of his main headquarters and his nationality; 4. requests by proxy: name, his family name, and his address ; 5. description of the trademark sought to be registered ; 6. the products and the services for which application is being made along-with their category ; 7. signature of the applicant or his proxy, and in case of corporate entity - the authorised signatory ; 8. ten (10) photos of the trademark compatible to the trademark model of the registration request; 9. in case of proxy, a copy of the proxy shall be enclosed with the original for compatibility; and 10. payment receipt of request-submitting fees pursuant to Article 41 of the Law 1. Applications are currently accepted in Arabic language only . 2. Opposition of trademarks can be made within ninety (90) days from the date of notice being published in official gazette. Claims must be filed before the board of grievance 1. Paris Convention for the Protection of Industrial Property; 2. Nice Classification; 3. Convention Establishing the World Intellectual Property Organisation (the WIPO ) ; 4. The economic agreement between gulf Cooperation Council (the GCC ) States (Article 20, Chapter VI) and the Unified Economic Agreement Between GCC States ; and 5. World Trade Organisation (the WTO ) - Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement) (1994) (April 10, 1996) 1. The KSA recognises and protects trademarks registered internationally even if such trademarks have not been registered within the region. The Law however is silent on establishing a time-frame within which well-known marks can be recognised and registered.

    Kuwait

    The law providing for trademark registration is Decree-Law Number 68 of 1980 (Trademarks), as amended by Decree-Law Number 10 of 1987 and Law Number 1 of 2001. The law also provides for temporary registration of trademarks for applicants interested in displaying their products at domestic or international exhibitions or events.

    10 Article 61 of the Kuwait Trademark Law defines trademarks to include distinctive form of words, letters, signs, images or inscriptions, figurative elements (pictorial elements), colour combinations, any signs perceivable by sight, audio signs, olfactory marks or any combination thereof when used or intended to be used or applied in distinguishing goods and thereby enable the owners of such mark or marks to manufacture, trade or offer to sell. Note: Although this guide does not set out fees and costs associated with registration, Kuwait has recently passed a decree (Decree 1268 of 2015) which comes in to effect from January 2016 . Consequently application fee is now set at approximately USD 155 and trademark registration fee at USD 799) 1. Natural or juristic persons of Saudi nationality ; 2. persons regularly residing in the Kingdom of Saudi Arabia and are permitted to engage in commercial or vocational activities; 3. foreigners who are nationals of countries that extend reciprocal treatment to the Kingdom; 4. nationals of a country which is a member to an international multi-lateral treaty in which the Kingdom is party to or persons who reside in that country ; 5. public agencies ; and 6. o wners of well-known marks. 1. Trademark Application form duly filled along with copy of logo or specimen draft (5 x 5 cm); 2. If the application is filed by an agent or attorney, a copy (and; one original) of the power of attorney in Arabic from principal/client must be submitted; 3. copy of applicant's trade license; 4. provide (12) copies of the trade mark; 5. trade mark registration certificate from the original country (for registering foreign marks); 6. an authorised contract for the trade mark registration, translated and certified by the authorities in home country (for foreign trademark) along with Arabic translations and duly attested by Embassy of Kuwait (or; any Arab embassy in absence of Embassy of Kuwait in home country) and legalisation before Ministry of Justice and Ministry of Foreign Affairs in Kuwait; 7. the trade mark priority documents (attached with all needed documents), Attached with all the above documents (Image in jpg format) ; and 8. sound marks to be provided in musical note or written description; 9. olfactory marks or scent marks must be provided in form of a written description; and 10. proof of payment 1. Applications are currently accepted in Arabic language only . 2. Opposition of trademarks can be made within thirty (30) days from the date of notice being published for third time in the official bulletin. Claims must be filed before the board of grievances. 1. Paris Convention for the Protection of Industrial Property; 2. Nice Classification; 3. Convention Establishing the WIPO; and 4. World Trade Organis ation (WTO) - Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) (1994) (April 10, 1996) 1. Kuwait's Ministry of Commerce and Industry (Trademark office) now accepts trademark applications based on priority claims . Required documents include certified copy of the priority document duly attested and legalised before the Consulate of Kuwait. 2. The Law confers protection to owners of well known trademarks that are not registered before Ministry of Commerce and Industry in Kuwait.

    Oman

    Industrial Property Rights Law (promulgated by the Royal Decree Number 133 of 2008) amending Royal Decree Number 67 of 2008 and repealing Decree 38 of 2000. Oman accessed the Geneva Act of the Hague Agreement Concerning the international Registration of Industrial Designs on 4 March 2009

    10 Article 1 of the Oman Trademark Law defines trademark as 'a n y s i g n susceptible of being specifically represented graphically that is capable of distinguishing goods ("trademark") or services ("service mark") of one undertaking from those of other undertakings. A mark may, in particular, consist of words (including personal names), designs, letters, colours or combinations of colors, numerals or the shape of goods or their packaging , holograms , geographical indications, sounds, scents and tastes. 1. Natives of natural or legal entity, practicing any of the commercial , industrial , professional, or service business ; 2. foreigners of natural or legal entity, practicing any of the commercial, industrial, professional, or service business in the State. 3. foreigners of natural or legal entity practicing any of the commercial, industrial, vocational or service business in any state having reciprocity of treatment with the State; 4. public legal persons ; and 5. owners of well-known marks. 1. Applicants are required to fill in the trademark application form (Form/Model number 1 duly signed ; 2. copies of logo or specimen (6x6 cm) (Form number duly signed and must be affixed with an adhesive; For corporate entities: 1. copy of commercial registration; 2. certificates and extracts of logo image; 3. signature of the authorised signatory; 4. copy of power of attorney (if obtained through trademark agency in Oman or trademark attorney) For Foreign companies:- 1. power of attorney duly legalised, attested and authenticated before Embassy of Oman (except if company is party to Apostle Treaty - please look at the last column); 2. authentication before Ministry of Justice and Ministry of Foreign Affairs in Oman; 3. certificate of incorporation; 4. copy of logo along with Form 1 and 2 1. The forms and other supporting documents to be submitted (including power of attorney) must be in Arabic; 2. The Oman Ministry of Commerce and Industry releases a publication inviting members of public to peruse the information and oppose grant of trademark that may prejudice the commercial and business interest of any person. Claims for opposition must be made within ninety (90) days from the date of publication in Oman's official gazette. 1. Geneva Act of the Hague Agreement Concerning the International Registration of Industrial Designs ; 2. Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks ; 3. Trademark Law Treaty; 4. Paris Convention for the Protection of Industrial Property; 5. Convention Establishing the WIPO; 6. World Trade Organis ation (WTO) - Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) (1994) (April 10, 1996) 7. The economic agreement between gulf Cooperation Council (the GCC ) States (Article 20, Chapter VI) and the Unified Economic Agreement Between GCC States; 8. Free Trade Agreement between Oman and United States of America ; and 9. Agreement between the Government of the Sultanate of Oman and the Government of the French Republic on the Reciprocal Promotion and Protection of Investments. 1. Oman recognises and protects trademarks registered internationally even if such trademarks have not been registered within the region. The Law however is silent on establishing a time-frame within which well-known marks can be recognised and registered. 2. Oman is a 'Connected State' under the (Hague) Convention of 5 October 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents from January 2012. Accordingly, documents duly notarised and apostilled by a foreign State, (which is a member of the Apostille Treaty), may be used in Oman without the need for legalisation from the Consulate or Embassy of Oman in that foreign country . 3. Under the WIPO-administered Madrid system, a trademark owner may protect a mark in up to 90 countries plus the European Union with its Community Trade Mark (CTM) by filing one application, in one language (English, French or Spanish), with one set of fees, in one currency (Swiss Francs).

    Qatar

    Law Number 9 of 2002 on Trademarks, Trade Names, Geographical Indications and Industrial Designs . Application for each class of goods or services is required to be submitted individually before the intellectual property Department of Ministry of Economy and Commerce

    10 Article 1 of Qatar Trademark Law defines Trademark as 'Trademark" means any clear visible sign that can distinguish the goods of a specific enterprise of a trader, manufacturer or service provider.' "Service Mark" means any clearsign that can distinguish the services of on enterprise from another. "Collective Mark" means a mark used or intended to be used by different enterprises for their goods or services under the control or the inspection of the owner of the mark, who may be a private or public legal person. 1. Natives of natural or legal entity, practicing any of the ecommercial , industrial , professional, or service business ; 2. foreigners of natural or legal entity, practicing any of the commercial, industrial, professional, or service business in the State. 3. foreigners of natural or legal entity practicing any of the commercial, industrial, vocational or service business in any state having reciprocity of treatment with the State; 4. public legal persons ; and 5. owners of well-known marks. 1. Applicants are required to fill in the trademark application form ; 2. five (5) copies of logo or specimen (6x6 cm) (Form number duly signed and must be affixed with an adhesive; For corporate entities: 1. copy of commercial registration; 2. certificates and extracts of logo image; 3. signature of the authorised signatory; and 4. copy of power of attorney. For Foreign companies:- 1. power of attorney duly legalised, attested and authenticated before Embassy of Qatar; 2. authentication before Ministry of Justice and Ministry of Foreign Affairs in Qatar; 3. certificate of incorporation; and 4. copy of logo along with Form 1. Applications are currently accepted in Arabic language only . 2. Opposition of trademarks can be made within one hundred twenty (120) days from the date of notice being published in the official bulletin. Claims must be filed before the board of grievances. The Civil Court of Qatar has the jurisdiction to hear and settle opposition claims in events where matters have not been resolved by the Registrar. 1. Paris Convention for the Protection of Industrial Property; 2. Nice Classification; 3. Convention Establishing the World Intellectual Property Organisation (the WIPO ) ; 4. The economic agreement between gulf Cooperation Council (the GCC ) States (Article 20, Chapter VI) and the Unified Economic Agreement Between GCC States ; and 5. World Trade Organisation (the WTO ) - Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement) (1994) (April 10, 1996) Article 2 of the Law recognises and protects trademarks registered internationally. Article 2 reads as follows: 'Without prejudice to the provisions of international or bilateral treaties and conventions effective in Qatar, foreigners shall have the same rights under this Law as nationals of the State of Qatar, provided that they are nationals of or residents in states that grant the nationals of and residents in Qatar reciprocal treatment.

    Bahrain

    Legislative Decree Number 11 of 2006 in Respect of Trade Marks

    10 Article 2 of the Bahrain Trademark Law sets out that 'a Trademark shall mean everything that takes a distinctive form such as names, words, signatures, characters, codes, numbers, signposts, seals,drawings, sounds, smells, pictures, inscriptions, packaging, figurative elements, figures, colours, combinations of colours, or any combination thereof or any other sign or a group of signs if used or intended to be used in distinguishing goods or services of an establishment from goods or services of another establishment , or to indicate the performance of certain services, or to distinguish goods or services as regards their source, ingredients, method of manufacture, quality, identity, or any other characteristics. Article 4 of the Law provides 'Without prejudice to the provisions of article (34) of this Law, any natural person or legal entity shall have the right to file an application for the registration of a trademark at the Competent authority, and shall be conferred the rights provided for in this Law, provided that the applicant is a citizen of the Kingdom or a national of a country member in the Paris Union or a country whose nationals enjoy national treatment under bilateral or international agreements adopted by the Kingdom , or if the person has real and effective industrial or commercial establishments in the territory of such country. 1. Applicants are required to fill in the trademark application form (Form/Model number 1 duly signed ; 2. copies of logo or specimen (6x6 cm) (Form number duly signed and must be affixed with an adhesive; For corporate entities: 1. copy of commercial registration; 2. certificates and extracts of logo image; 3. signature of the authorised signatory; and 4. copy of power of attorney (if obtained through trademark agency in Bahrain or trademark attorney). For Foreign companies:- 1. power of attorney duly legalised, attested and authenticated before Embassy of Oman; 2. authentication before Ministry of Justice and Ministry of Foreign Affairs in Bahrain; 3. certificate of incorporation; and 4. copy of logo along with Form 1 and 2 . Every interested party may submit the competent authority a written opposition to the procedures of the registration of the trademark within ninety days from the date of the application approval , provided that the opposition is reasoned. For Sound Marks: Applicants must submit:- a. musical composition (or; musical note) composing of sound mark; and b. compact-disc (CD) with musical note attached in mp3 format For Smell Marks: Applicants must submit:- a. explanatory legend as to essence of smell; b. labels printed with legend source and essence details. 1. Geneva Act of the Hague Agreement Concerning the International Registration of Industrial Designs ; 2. Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks ; 3. Trademark Law Treaty; 4. Paris Convention for the Protection of Industrial Property; 5. Convention Establishing the WIPO; 6. World Trade Organis ation (WTO) - Agreement on
    Trade-Related Aspects of Intellectual Property Rights (TRIPS Agreement) (1994) (April 10, 1996) 7. The economic agreement between gulf Cooperation Council (the GCC ) States (Article 20, Chapter VI) and the Unified Economic Agreement Between GCC States; 8. Free Trade Agreement between Oman and United States of America ; and 9. Agreement between the Government of the Sultanate of Oman and the Government of the French Republic on the Reciprocal Promotion and Protection of Investments Per Article 5 - If an application for the registration of a trademark is filed in any country of the Paris Union or in a country whose nationals enjoy national treatment under bilateral or international agreements adopted by the Kingdom , the applicant or the assignee may ,within six months from the filing date of the application, file an identical application at the Competent authority concerning the same mark and same goods or services contained in the previous application that is in accordance with the terms and conditions provided for in this Law and its implementing regulations and the Orders for the implementation thereof. In this case, the applicant or the assignee may enjoy the right of priority in accordance with the provisions of Paris Convention for the protection of industrial property subject to the provisions of Article (4) Section (D) of that convention. Bahrain is a 'Connected State' under the (Hague) Convention of 5 October 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents from January 2012. Accordingly, documents duly notarised and apostilled by a foreign State, (which is a member of the Apostille Treaty), may be used in Oman without the need for legalisation from the Consulate or Embassy of Oman in that foreign country.

     

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    Wed, 02 Mar 2016 11:08:00 GMT
    <![CDATA[From Beach to Business]]> Company Formation in Bahrain – the Options of a Foreign Investor

    The geography alone paints the picture of a holiday-maker's paradise. As an island located off the western shores of the Persian Gulf, the mere mention of Bahrain puts us in mind of white-sand beaches, calm azure seas, palm trees and pina coladas. Yet anyone arriving in the country in pursuit of such a vision is likely to be disappointed – for the past 20 years only 5% of the beaches adorning the 175km of coastline are publically accessible. So how else could a disheartened beach-enthusiast spend their time in Bahrain? Perhaps they could visit one of the many art and culture centers for which the area is famed? Or make a trip the Formula One racing track? Or possibly incorporate a company?

    Accepted, corporate activity is maybe not the best substitute for sun bathing. Yet operating out of such an appealing setting, conveniently located between Asia and Europe, in a GCC country that prides itself on being a little more relaxed than its neighbours are all factors which are drawing investors to Bahrain on account of the commercial landscape as opposed to the physical. This article is therefore intended to provide a brief overview of the laws and procedures applicable to any foreign national wishing to incorporate an entity in Bahrain.

    It is of note that the general premises of the law are similar throughout the GCC. Dubai has long since enticed investors from across the globe, and the universal interest in setting up corporate entities here has resulted in numerous publications, articles and guides to company formation. Why then, given the general similarities in law across the GCC, does company formation in Bahrain warrant specific attention? The justification is routed within one fundamental distinction between the commercial laws of Bahrain and the UAE in particular, namely in the provisions relating to the compulsory involvement of a local shareholder. Here, Bahraini law adopts a unique and industry-specific approach, which we shall examine in greater detail hereafter.

    As in the majority of countries across the globe, the law of the Kingdom of Bahrain distinguishes between a number of forms that a company may take. Article 2(a) of the Legislative Decree 21 of 2001 (the Commercial Companies Law) provides that a commercial entity must take the form of a general partnership company, limited partnership company, association in participation, joint stock company, limited partnership by shares , limited liability company , single person company or holding company. Any entity failing to take one of these recognized forms shall be annulled, with the partners, shareholders and any other individual who has signed any paperwork pertaining to the same incurring joint and unlimited liability for the non-compliant company. Despite the number of models available our focus here is on foreign nationals considering incorporation. Certain forms (for example limited partnership companies) will require the cooperation of a Bahraini national – we shall therefore concentrate only on the company types available to entities registering under 100% foreign ownership.

    Perhaps the most familiar of these models is the limited liability company (nationally known as a WLL – a company "with limited liability"), which is defined under Part VII of the Commercial Companies Law. In general such an entity is characterized in the same way as under the law of the UAE and in a multitude of other jurisdictions – namely that the liability of each shareholder is limited to the amount of the capital which he has invested. However here the aforementioned distinction comes into play – under the law of Bahrain 100% of a WLL may be owned by foreign nationals. The reasons for such commercial liberty can only be speculative, yet the fact that local citizens make up a greater percentage of both the national population and workforce than in many other GCC countries may be a contributory factor.

    So pursuant to the law, Mr X and Mr Y (both foreign nationals) are able to incorporate a WLL company in Bahrain. What requirements must they meet? For starters they must ensure that they have a minimum share capital of BD 20,000 (Bahraini Dinars twenty thousand – the equivalent of USD 53042 and AED 194,854) as per Article 264 of the Commercial Companies Law. This capital may be divided into a number of equal shares of the duo's choosing, providing that the value of each share is at least BD 50 (Bahraini Dinars fifty). They must also observe the requirements of Article 265 when drafting the Memorandum of Association (MOA) taking care not only to include the listed information (such as their names, titles and nationalities, the company headquarters, company objectives and conditions applicable to share assignment) but to also ensure that an Arabic language version of the document is notarized in accordance with Article 6. Failing to take this step will result in the invalidity of the company. Moreover, having selected a company name (ensuring that the same includes the prefix "with Limited Liability"), Messrs X and Y must remember to use the same in any contract, invoice, publication, paper or advertisement pertaining to the company. Should they neglect to do so each shall fall liable to the extent of his personal wealth, rather than the individual portion of share capital invested.

    Once the constitutive documents have been prepared and the lease of a premises to serve as the company's office has been secured Messrs X and Y may approach the Bahrain Investment Centre (BIC) to submit the documents required in order to obtain the approval of the Ministry of Commerce (MoC). Without the MoC's consent the company cannot be incorporated. In addition to the draft MOA the pair should also present their completed company registration application form, relevant identification and the lease agreement relating to the company's premises. Furthermore they shall require their respective CVs and proof of qualification.

    The specifics of the latter requirement, namely the proof of qualification, will vary depending on the principle activity of the intended company. If Messrs X and Y intended to incorporate a company dealing in contracting they would require only proof that they had completed their secondary school education, yet the desire to provide business consultancy services would render proof of a master's degree or 5 years of relevant experience necessary. However when considering the activities of the company the team have a much more important factor to take into consideration – under the Commercial Companies Law and directions of the Ministry of Industry and Commerce some commercial activities, such as any service relating to gambling, the manufacturing of alcoholic beverages, cigarettes and narcotics and the importation or industrial use of restricted chemicals, are completely prohibited. Others are reserved for Bahraini national citizens (for example the supply of foreign manpower, car and motorcycle rental, the supply of oil products and commercial agencies) and the provision of further services are restricted to Bahraini and/or GCC citizens (fishing, accounting and book keeping services and cargo clearing). Additionally, despite the country's seemingly liberal approach to expats' commercial activities, even greater limitations apply. A Bahraini partner is required for any entity operating in the field of travel and tourism, licenses for medical centres and clinics (save for hospitals) are awarded only to GCC nationals with medical degrees and residing in Bahrain, and the requirement of a 51% minimum local shareholding applies to any company operating in the trade or retail sector. Given that trade and retail is probably the most common principle activity of a foreign WLL the latter regulation alone imposes a huge restriction on foreign investors. Article 262 of the Commercial Companies Law narrows the window of opportunity further still by prohibiting a WLL from undertaking insurance, banking or fund investment related activities.

    Let us imagine that Mssrs X and Y are performing an activity that did not fall foul of the above restrictions. They have successfully incorporated their WLL (the process of which, according to the MoC, would have taken approximately 2 weeks) and are respecting the provisions of Article 286 regarding the annual submission of audited financial statements. The business (named Z WLL) is operating at a profit and is not subject to any legal proceedings. However on account of commitments in his home country Mr X decides that he wishes to dispose of his interests in Z WLL and leave Bahrain. In keeping with Article 270 shares in the company may be transferred via procedures similar to those in the UAE – namely that Mr X must first notify Mr Y and any other shareholders as to the availability of his shares and, after a time lapse of 2 weeks, may transfer the shares to a third party should none of the existing shareholders choose to redeem them. In this instance Mr Y informs Mr X that he would like to purchase the shares. The transfer takes place in keeping with the Commercial Companies Law, and is registered in the Commercial Register and publicized in the Official Gazette as per Article 271.

    This has the effect that Mr Y becomes the sole shareholder of Z WLL. As the number of shareholders has fallen below 2 the provisions of Article 261 shall apply, thus effecting the transformation of Z WLL into a single person company by force of law. As per Article 2(a) a single person company is a separate type of entity, and such a transformation will require Mr Y to examine the relevant provisions of the Commercial Companies Law to ensure Z WLL remains compliant. In order to maintain the existing company model Mr Y will have 30 days in which to transfer some of the shares to at least one other third party – the minimum number of shareholders (namely 2) will then have been achieved, and Z WLL will retain its status.

    The transformation of Z WLL into a different category of entity and the responsibility of ensuring that the single person company complies with a different set of provisions may be cumbersome to Mr Y. However the capacity to amend the company's structure in Bahrain affords benefits which are not available in the UAE, where the right to operate a sole establishment outside of a free zone is afforded only to local citizens. Despite the fact that he will have to exercise diligence in researching the relevant applicable law Mr Y may continue to operate the company without much inconvenience.

    So were we justified in our earlier assumption that Bahrain has adopted a more relaxed approach to foreign investment and company incorporation? Although the prima facie provision that foreigners may own 100% of a company without the involvement of an obligatory local partner or sponsor makes the establishment and operation of a WLL somewhat easier than in the UAE, the less-obvious restrictions on various business activities go some way to cancelling out the benefits. But for any foreign investors (jointly or separately) wishing to own 100% of a WLL or single person company which will perform a permitted activity, the provisions in place in Bahrain are no doubt appealing.

    Perhaps more appealing than the country's beach scene…

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    Thu, 06 Nov 2014 12:00:00 GMT
    <![CDATA[Даже СО2 можно продавать!]]>

    «Поражающие признаки глобального потепления открыли нам глаза на представление о изменении климата. Тающие снежные вершины, беспомощные полярные медведи, ухудшающееся качество воздуха и повышение температуры мирового океана – все это признаки, оказавшие эффект пробуждения на человеческий разум и вызвавшие разговоры о меняющемся лице нашей планеты».

    Правительство США расходится во мнении, когда дело касается изменения климата или последствий глобального потепления. С другой стороны, страны Европейского Союза уже 2 года применяют в тестовом режиме так называемую Европейскую Торговую Систему, программу по минимизации выбросов углекислого газа. Рост цен на энергию имеет глобальное воздействие, и люди обеспокоены, если не испуганы, собственным углеродным производством.

    Рамочная конвенция Организации Объединенных Наций об изменении климата (UNFCC), международный договор с 192 участниками представил Киотский протокол (Протокол), который вступил в силу в 2005 году. Этот договор налагает обязательства на развитые страны по сокращению выбросов парниковых газов, таких как СО2, гидрофтороуглеродов (ГФУ) и перфторуглеродов (ПФУ). Протокол признал, что развитые страны несут главную ответственность за значительные уровни выпуска парниковых газов в атмосфере. Исторически и статистически, США является самым высоким источником выбросов парниковых газов, и хотя они являются участниками протокола, но до сих пор его не ратифицировали. В соответствии с целями Протокола, ряд развитых стран обязались сократить выбросы СО2 и других вредящих атмосфере газов. Эти намерения являются юридически обязательными. Развивающиеся страны не имеют подобных обязательств и целей в соответствии с Протоколом, но обязались значительно уменьшить выбросы углерода. После долгих споров и рассмотрений, было принято странами-членами решение, что продажа квот на выбросы вредных газов является более предпочтительным методом регулирования выбросов углеводорода, чем налогообложение.

    Продажа квот на выбросы  - это название, данное системе контроля за выбросами двуокиси углерода. Эта система основана на предположении, что на данные выбросы устанавливается лимит правительством и международными организациями. Торговля углеродными квотами позволяет развитым странам экономически решать свои обязательства в рамках Киотского Протокола. Им разрешается торговать своими квотами на выброс углерода между собой, а также получать углеродные кредиты для финансирования проектов в развивающихся странах, направленных на сокращение выбросов углекислого газа.

    Страны, которые юридически связаны ограничениями, установленными и согласованными с Протоколом, называются рынками для соблюдения договорных обязательств. В рынках соблюдения ответственность по сокращению карбоновых выбросов лежит на отдельных отраслях и компаниях, контролирующих выбросы углерода в атмосферу. Проиллюстрируем это на примере:

    Компании А и Компании Б выделено  100 квот на выбросы углерода, который разрешает им выпустить 100 тонн углекислого газа. Компания А инвестирует в экологически безопасное оборудование и устанавливает обновления, чтобы убедиться, что она выбрасывает только 90 тонн. Компания Б не использует ни один из вариантов, поскольку не может себе позволить ремонт оборудования. Она выбрасывает 110 тонн углеводорода, что на 10 тонн больше разрешённого лимита. Теперь, в соответствие с Протоколом и правилами по выбросам углекислого газа, Компания Б может приобрести квоты на выбросы (в денежной форме) у Компании А. И это, в свою очередь, помогает Компании А компенсировать часть расходов на модернизацию оборудования.

     Углеводородные квоты, таким образом, создали собственный рынок, давая денежную стоимость цене загрязнения воздуха. Существует значительное количество национальных и региональных рынков, которые в данный момент развиваются.

    В дополнение к вышеуказанному примеру, отдельные лица, группы и организации могут также торговать углеродными квотами. Рынки, которые обслуживают добропорядочных граждан и организации, которые ответственно относятся к выбросам, могут торговать в пределах добровольных углеродных рынков (т.е. рынков, помимо рынков соблюдения, которые юридически не обязаны придерживаться установленного лимита на эмиссии..

    Все упомянутые углеродные кредитные операции вызвали тревогу в мировом сообществе. Экономисты утверждают, что если углеродный рынок оставить действовать свободно, без регулирования, то не будет никакого существенного снижения выбросов углекислого газа. Они считают, что нет адекватных стимулов для компаний по сокращению выбросов в соответствии с принципом торговли углеродом. Это трудная задача внедрить и регулировать добровольный углеродный рынок. Отсутствие согласованных правил, отсутствие единого органа для мониторинга и контроля углеродной торговли может стать благом для банкиров и трейдеров, но нанести гораздо более разрушительный эффект мировому сообществу.

    Очевидно, что в отличие от традиционных товаров, углеродные квоты не слишком понятны для покупателей и даже некоторых продавцов. Этот недостаток знаний и понимания делает торговлю квотами на выброс углерода очень уязвимой для мошенничества. Эта форма торговли еще находится в стадии становления, и очевидно, что по мере развития, появятся свои сложности. Торговый рынок углерода может быть введен в заблуждение путем манипуляций о получении большего количества углеродных кредитов от некоторых проектов, чем было получено на самом деле. Было несколько случаев, когда квоты продавались людям с хорошими намерениями, но в сущности они никогда не существовали, или принадлежали другим лицам (не тем, кто позиционировал себя как продавец). Сложность углеродных рынков была использована в обманных целях компаниями, которые делали ложные заявления о финансовых и экологических выгодах от инвестиций в торговлю квотами на выбросы, делая такие инвестиции привлекательными. Австралийская компания провела в 2009 году телемаркетинговую кампанию, утверждая, что углеродные кредиты – это будущее и предлагая высокие доходы по этим инвестициям. Компания получила иск от обманутых инвесторов на 3,2 миллиона долларов  . [1]

     Известно, что слабые нормативные акты в этом секторе торговли были использованы для осуществления отмывания денег, налогового мошенничества, мошенничества с ценными бумагами. В одном из подобных судебных разбирательств в Королевском Суде Лондона проходили трое обвиняемых, которые создали фиктивные компании, якобы импортировавшие углеродные кредиты в Великобританию. Они были признаны виновными в обмане правительства на 39 миллионов фунтов НДС (налога на добавленную стоимость) всего за 69 дней торговли. Украденный НДС был переведен на счета в ОАЭ для отмывания и легализации .[2]

    Сложный характер кредитного рынка углеводорода делает его уязвимым для манипуляций. Крайне важно, чтобы правовое регулирование было очень жестким, когда дело касается регулирования и торговли в этой сфере. Данный рынок должен стать более многогранным в ближайшем будущем, и существует необходимость в строгой внутренней и международной правовой экспертизе для защиты компаний и частных лиц, которые стремятся быть экономически сознательными. Сегодня СО2 продается, но что мы можем ожидать в будущем?

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    Mon, 05 May 2014 12:00:00 GMT